McDonald's sales dip: First decline in over three years
The McDonald's fast food restaurant chain recorded a drop in sales in the second quarter of 2024. According to the company's financial reports published on Monday, this marks the first occurrence in 13 quarters or over three years.
According to the report, global sales fell by 1 percent, while expectations had indicated a 0.5 percent growth. This result was attributed to a decline in sales in the United States by 0.7 percent, in foreign markets by 1.1 percent, and in markets where licensed entities operate by 1.3 percent. However, consolidated revenues increased by 1 percent after accounting for currency exchange rate differences.
McDonald's with a sales decline
McDonald's believes the decline in sales is due to a smaller number of guests visiting the chain's restaurants, which was only partially offset by the introduced menu price increases.
In foreign markets, France accounted for the largest sales declines. Meanwhile, in countries where McDonald's licenses its operations, poorer sales results were influenced by the situation in the Middle East and a drop in sales in China. The company assesses in its financial report that better results in Latin America and Japan did not counterbalance these phenomena.
There are over 40,000 McDonald's restaurants worldwide.
