McDonald's Reports First Sales Decline Since Pandemic

McDonald's reported a 1% decline in same-store sales for the second quarter of 2024, marking its first downturn since the onset of the COVID pandemic. The company attributed the drop to inflation-related pressures on consumers, who are increasingly seeking better value and affordability in their dining choices. CEO Chris Kempczinski noted that the decline was particularly pronounced in markets like France, which has a significant Muslim population affected by the ongoing conflict in Gaza. Despite launching a $5 meal deal to attract price-sensitive customers, McDonald's revenues were flat at $6.49 billion compared to the previous year, with U.S. sales decreasing by 0.7%. The fast-food chain is facing challenges as rising menu prices—up by at least 20% since 2019 for popular items—have made it less competitive against grocery options. The company is exploring local marketing strategies and providing support to franchisees amid these tough conditions.