In international markets where McDonald’s operates and franchises restaurants, comparable sales fell 2.1%.
McDonald’s reported a sharp drop in sales in the third quarter due to weak demand in France, the UK, the Middle East and China. Worldwide sales were down 1.5%. The Financial Times writes about it on Tuesday, October 29.
The fast food restaurant chain clarified that the decline in sales exceeded the forecast of Visible Alpha analysts, who expected a decrease of 0.6%.
This is McDonald’s first consecutive sales decline since the Covid-19 pandemic in 2020, following a 1% drop in the second quarter as the chain tries to win back customers, especially low-income households income hit by prolonged food inflation. Third-quarter revenue rose 3% to $6.9 billion, beating expectations of $6.8 billion, but net income fell 3% to $2.26 billion, missing estimates by $2.3 billion.
McDonald’s said the war in the Middle East and falling sales in China weighed on its performance, although its business in Latin America continued to grow.
To attract American customers dissatisfied with the rising prices of burgers, fries and drinks, McDonald’s has continued its summer promotional offers.
Meanwhile, in the first half of 2024, the revenue of the McDonald’s restaurant chain in Ukraine increased by 44% and reached 7.8 billion Hryvnia, and the profit increased by more than 80%.
McDonald’s shares fell 9% after reports of an E. coli outbreak at US establishments.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.