McDonald’s has reported its first quarterly sales decline since 2020, with a 1% drop in global sales for the second quarter of 2024. The fast-food giant’s revenue totaled just under $6.5 billion, slightly below the same period last year and missing market expectations. This decline marks a significant shift, as the company had previously managed to increase sales despite rising inflation.
In the United States, sales decreased by 0.7%, primarily due to reduced customer traffic and the impact of strategic menu price increases. Efforts like the introduction of a special $5 menu aimed at maintaining affordability have not been sufficient to counteract the decline in guest counts.
Internationally, McDonald’s faced similar challenges. Sales in the International Operated Markets segment fell by 1.1%, with France contributing notably to the decline. The International Developmental Licensed Markets segment saw a 1.3% decrease in sales. In China and Japan, same-store sales also dropped by 1.3%.
Additionally, McDonald’s continues to feel the impact of a boycott in the Middle East, which began last year following social media images of the company providing free meals to Israeli soldiers. This boycott has extended to parts of Asia and Europe, further affecting sales.
Overall, McDonald’s net income for the quarter was $2.02 billion, down 12% from the previous year. Earnings per share stood at $2.97, below the expected $3.07. The company’s financial struggles underscore the difficulties in maintaining growth amid economic pressures and regional challenges.