McDonald's Sales Fall Worldwide for First Time Since 2020
McDonald's Sales Fall Worldwide for First Time Since 2020
The Facts
McDonald's global sales have declined for the first time in four years amid rising prices and changing consumers' eating habits.McDonald's global sales have reportedly declined for the first time in four years amid rising prices and the changing eating habits of consumers.
On Monday, the fast-food giant reported a 1% year-on-year fall in sales in the June quarter, with total revenue flat at $6.49B and net profit falling 12% to $2.02B.On Monday, the fast-food giant reported a 1% year-on-year fall in sales from April to June, with total revenue flat at $6.49B and net profit falling 12% to $2.02B.
The Spin
McDonald's "$5 meal deal" failed to attract enough customers and is partly the reason behind its sales decline over the past three years. Despite being designed to counteract higher grocery prices, it cannibalized sales from higher-priced menu items, contributing to the overall drop in revenue.
McDonald's global sales drop can be countered with a plan that is already in the process of implementation. Its $5 meal deal in the US has exceeded sales expectations. This can be part of a broader strategy to maintain affordability and attract more customers.
