McDonald’s sales growth has further slowed down for another quarter as consumers become more discerning and the Middle East conflict persists.
For the three months ended March 31, global comparable sales saw a modest 1.9 per cent increase. Although this marks 13 consecutive quarters of positive comparable sales, growth has slowed for the fourth quarter in a row.
CEO Chris Kempczinski said consumers have become “more discriminating with every dollar that they spend”, adding that the company will focus on delivering reliable value to attract more visits.
Comparable sales inched up 2.5 per cent for the US market and up 2.7 per cent for the international operated markets segment. Increases were recorded in most markets, led by the UK and Germany and partly offset by a decerases in France.
The international developmental licensed markets segment reported a 0.2 per cent decline, which the company attributed to the ongoing war in the Middle East. This was offset by positive comparable sales in Japan, Latin America and Europe.
The company’s consolidated revenues rose more than 4 per cent to $6.169 billion, while net income increased 7 per cent to $1.9 billion.
“As we look to the rest of 2024 and beyond, we remain focused on leveraging the competitive advantages within our Accelerating the Arches plan and growing QSR market share to drive long-term growth,” Kempczinski added.
