McDonald's sees first sales dip in three years, blames global issues
According to the financial reports released on Monday, McDonald's reported a decline in sales in the second quarter of 2024. This is the first such case in over three years, or 13 quarters.
9:36 PM EDT, July 29, 2024
According to the report, global sales fell by 1%, while expectations were for a 0.5% increase. This result was due to a 0.7% decline in sales in the United States, a 1.1% decline in international markets, and a 1.3% decline in markets operated under license. Consolidated revenues increased by 1% when accounting for currency exchange differences.
McDonald's facing a decline in sales
McDonald's believes the sales decline is due to a decrease in the number of guests visiting the chain's restaurants, which was only partially offset by the price increases introduced in the menu.
In foreign markets, France is responsible for the largest sales declines, and in countries where McDonald's licenses its operations, poor sales performance was influenced by the situation in the Middle East and a decline in sales in China. According to the company in its financial report, these phenomena were not offset by better results in Latin America and Japan.
There are over 40,000 McDonald's restaurants worldwide.
