McDonald’s has experienced its first global sales decline in over three years, with comparable sales falling by 1% in the second quarter, contrary to analysts’ forecasts of a slight 0.5% increase. CEO Chris Kempczinski attributed the downturn to inflation, which has driven consumers to seek out more budget-friendly dining options rather than splurging on McDonald’s pricier menu items.
Despite a slight overall revenue increase of 1%, the company has been grappling with decreased consumer confidence and higher menu prices, including for favorites like the Big Mac. These elevated prices have led some customers to reconsider their choices, impacting McDonald’s sales.
In response, McDonald’s introduced a $5 meal deal in June, targeting budget-conscious diners. This promotion, set to continue into August, is part of the company’s strategy to adapt to shifting consumer behavior and economic pressures. By offering more affordable options, McDonald’s aims to boost sales and maintain its competitive edge in a challenging market.