‘Key Macro Indicator’ Of US Financial Crisis Rears Its Clownish Head Again
Daily CallerJUL 22 2024
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 from April to June, with total revenue flat at $6.49B and net profit falling 12% to $2.02B.
Amid what the fast food giant's Chief Executive Officer, Chris Kempczinski, characterized as "very discriminating" consumer spending, a steeper decline of 1.3% in McDonald's sales was reported in its international developmental licensed markets.
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.