A McDonald's emblem adorns the front of one of their outlets in Sydney on July 4, 2024. (Photo : DAVID GRAY/AFP via Getty Images)
McDonald's reported that its global sales dipped for the second quarter, the first time it has done so in over three years.
Reuters reported that people avoiding higher-priced menu items and persistent inflation are some of the factors that affected the fastfood chain's downslide, which was also replicated in its competitors like Burger King, Wendy's, and Taco Bell.
The Financial Times reported that the company's comparable sales fell 1% in the second quarter, compared to a 0.5% expected increase. However, overall revenue still rose by 1%.
McDonald's shares have been down 15% this year, but rose by nearly 4% after company executives said that the $% meal deal launched in late June sold above their expectations that they sought to extend the deal beyond August.
It is understood that McDonald's maintained its 2024 forecast of having a 40% operating margin, and that it would be more selective with price increases to protect profitability.
McDonald's CEO Chris Kempczinski said that consumer sentiment in most of its major markets remain "low."
On the other hand, Zacks Investment Management client portfolio manager Brian Mulberry said that while customer traffic remained soft at the moment, the company "should be getting better" in the latter half of the year.