McDonald’s posts first underperforming quarter results since pandemic – Washington Examiner

Asher NotheisJuly 29, 2024

McDonald’s reported its first underperforming quarter since the pandemic, with a significant decrease in customer traffic during the second quarter of the ‍year, specifically⁢ from April 1 to June 30. The fast-food chain saw global comparable sales drop by 1%, mirroring a similar decline of 1.3% in its‌ fourth quarter of 2020. Additionally, net income fell by 12%. CEO Chris Kempczinski highlighted that consumers are becoming more selective with their spending, prompting the⁤ company to focus on enhancing its value proposition to customers.

McDonald’s posts first underperforming quarter results since pandemic

McDonald’s saw fewer customers enter through its golden arches in its second quarter, marking the first time since 2020 that the chain experienced a decrease in sales.

The results spanning from April 1 to June 30 of this year saw its global comparable sales decrease by 1%, compared to the 1.3% decrease in sales McDonald’s experienced in its fourth quarter in 2020. The most recent quarter report also revealed that the net income of McDonald’s went down by 12%.

McDonald’s CEO and Chairman Chris Kempczinski cited how consumers are being “more discriminating” in how they spend their money, and the chain is aiming to address increasing its value to customers.

A McDonald’s restaurant is seen on Feb. 14, 2018, in Ridgeland, Mississippi. McDonald’s confirmed on June 18, 2024, that it has decided to end a global partnership with IBM, which has been testing an artificial intelligence technology at select McDonald’s drive-thrus since 2021.(AP Photo/Rogelio V. Solis, File)

The previous quarter saw McDonald’s sales increase by 1.9%, though this was below the 2.1% that had been forecasted.

Last week, details about the burger chain’s plans to extend its $5 meal deal were revealed, which had originally been set to end after a four-week run. Approximately 93% of all locations committed to continuing this offer, though the length of the extension will vary among restaurants, according to a memo viewed by Bloomberg News.

The move to extend this deal comes as McDonald’s is also planning to increase its “affordability plans through the rest of year,” the memo states. The chain is also seeking to increase its hours of operation to serve customers during off-peak hours.

" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."