McDonald’s reported a surprise drop of 1% in global sales for the second quarter, marking its first decline in 13 quarters. This decrease was attributed to inflation driving consumers towards more affordable food options, leading them to avoid higher-priced menu items, Reuters reports.
McDonald’s revenue rose by 1%, but US comparable sales fell by 0.7%, down from a 10.3% increase a year ago. International sales dropped by 1.1%, particularly affected by weak performance in France and a slower recovery in China. Consumer boycotts related to the Gaza war also affected sales in the Middle East.
The company noted that persistent inflation has led to lower-income consumers cutting back on visits, affecting sales. McDonald’s is addressing this by focusing on $5 value meals and is working with franchisees to extend the meal deal beyond August.
