EconomyLens.com
No Result
View All Result
Thursday, July 3, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Other

Profits fall at McDonald’s as it redoubles value push

Andrew Murphy by Andrew Murphy
July 30, 2024
in Other
Reading Time: 6 mins read
A A
0
56
SHARES
706
VIEWS
Share on FacebookShare on Twitter

McDonald's is extending a special $5 meal package in the United States as it redoubles efforts to win back inflation-weary consumers . ©AFP

New York (AFP) – Fast food giant McDonald’s vowed Monday to win back consumers with better value offerings after it reported a rare sales decline that the company partly attributed to an exodus of inflation-weary low-income consumers. All three of the chain’s operating regions experienced comparable sales declines, a significant weakening next to the year-ago results when global comparable sales jumped nearly nine percent.

Related

Stocks climb as strong US jobs data soothes growth worries

UK’s Starmer backs finance minister after tears in parliament

Tesla reports lower car sales, extending slump

US-Vietnam trade deal sows new China standoff

Stocks rise, dollar dips ahead of US jobs data

For much of the recent period of rising consumer prices, McDonald’s garnered strong sales gains from diners who “traded down” to the fast food giant from more expensive rivals. Executives said the market had, however, shifted in the most recent period. “We are seeing trade down, but what we’re seeing is that the loss of the low-income consumers is greater than the trade-down benefit,” said Chief Executive Christopher Kempczinski on a conference call. “You’re seeing with that low-income consumer, in many cases, they’re dropping out of the market, eating at home and finding other ways to economize.”

Profits for the quarter ending June 30 were $2.0 billion, down 12 percent. Revenues were essentially flat at $6.5 billion. In its home market of the United States, McDonald’s experienced a drop in guest counts, although results were bolstered somewhat by digital and delivery growth. McDonald’s international developmental licensed markets were hit by negative results in China and the drag from the Israel-Gaza war, which has seen some consumers boycott the chain. Executives cautioned that the weakness from the latest quarter was extending so far into the third quarter. “We don’t expect that we’re going to see a change in that environment over the next few quarters,” said Chief Financial Officer Ian Borden. “That’s why we’re laser-focused on getting value and affordability right.”

McDonald’s in June kicked off a $5 meal promotion in the United States that includes a sandwich, small fries, a small soft drink and a four-piece Chicken McNuggets package. The summer offering is a pitch to inflation-weary consumers to “help your dollar go further,” said a June 20 company announcement. Executives said Monday they were pleased with the additional traffic generated by the program and that 93 percent of US restaurants had agreed to extend it further into the summer. Kempczinski described a broad campaign to win back consumers that will also entail menu changes and marketing campaigns. “We are resolved to reignite share growth in all our major markets regardless of the prevailing market conditions,” he said. “This won’t happen overnight, but it will happen.”

While McDonald’s results translated into earnings below expectations, shares rallied 4.5 percent around midday. A note from Briefing.com characterized the share gains as a surprise but noted that McDonald’s shares had fallen 17 percent since mid-January. “We think the stock is higher because a lot of negativity was priced in already,” Briefing.com said. The poor results “seems to have shaken McDonald’s up and has lit a fire under them to focus more on value,” Briefing.com added. “Investors seem to be reacting positively.”

© 2024 AFP

Tags: fast foodinflationUS economy
Share22Tweet14Share4Pin5Send
Previous Post

France probes ultra-left link to rail sabotage

Next Post

From ice baths to osteopaths: unproven therapies at the Olympics

Andrew Murphy

Andrew Murphy

Related Posts

Other

In US capital, Trump tariffs bite into restaurant profits

July 3, 2025
Other

US stocks back at records as oil prices rally

July 3, 2025
Other

US senator urges bribery probe over Trump-Paramount settlement

July 3, 2025
Other

Trump says Vietnam to face 20% tariff under ‘great’ deal

July 3, 2025
Other

Wall Street shrugs off drop US private sector jobs

July 2, 2025
Other

Stocks stuck as US private sector jobs disappoint, UK’s Reeves future uncertain

July 2, 2025
Next Post

From ice baths to osteopaths: unproven therapies at the Olympics

Stocks rally peters out as focus turns to interest rates

UK warns of extra £22bn hole in public finances

Asian investors trade cautiously ahead of central bank decisions

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

New York ruling deals Trump business a major blow

72

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

US stocks back at records as oil prices rally

July 3, 2025

UK’s Starmer backs finance minister after tears in parliament

July 3, 2025

Tesla reports lower car sales, extending slump

July 3, 2025

Strike by French air traffic controllers disrupts summer travel

July 3, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.