McDonald’s sales fall for first time since 2020

World

Published: 2024-07-30 15:39

Last Updated: 2024-07-30 15:52


A McDonald's store – the company reported a drop in its global sales for the first time in four years (13 quarters).
A McDonald's store – the company reported a drop in its global sales for the first time in four years (13 quarters).

McDonald’s has reported a drop in its worldwide sales for the first time since 13 quarters (the COVID-19 pandemic).

The decline comes amid rising prices due to inflation and ongoing boycotts over the Gaza conflict.

Same-store sales decreased by 1 percent in the second quarter of the year, with CEO Chris Kempczinski forecasting the drop to continue over the next few quarters.

It is “clear that our value leadership gap [over rivals] has recently shrunk…but we are working to fix that with pace,” Kempczinski said.

McDonald’s attributed the drop to its customers in the United States, where fast-food consumers suffer from soaring inflation and rising prices, and also to what it called “the continued impact of the war in the Middle East” along with weaker demand in China.

Wide-scale universal boycotts launched in most of the 57 Arab and Musiem countries, fueled by the ongoing “Israeli” aggression against the Gaza Strip after McDonald’s franchise in “Israel” announced donating thousands of free meals to “Israeli” troops fighting in Gaza.

The giveaway prompted critics to accuse the fast food chain of helping to support the mass killings of Palestinians.


Read more: McDonald's buys back franchise restaurants in “Israel” after sales drop


McDonald’s parent corporation in Chicago, U.S. distanced the firm from the controversy by saying it rejects violence of any kind and adding that it would take sides in the conflict.

Afterwards, the “Israeli” franchise, which comprises 225 restaurants was taken over by the company earlier this year after a “meaningful business impact” in the Middle East has taken place according to its CEO.