McDonald’s recently announced that its quarterly profit didn’t meet expectations for the first time in two years. This unexpected outcome was due to customers not taking advantage of promotions and the effects of the conflict in the Middle East on international sales.
The company’s global sales growth has been decreasing consistently, reaching only 1.9% this quarter. This decline marks the fourth consecutive quarter of decrease, which goes against what analysts had predicted. According to data from LSEG, analysts had expected a 2.35% increase.
During a discussion after the earnings report, McDonald’s CEO Chris Kempczinski talked about changes in how people are spending their money. He mentioned that consumers are becoming more careful about how they spend, regardless of their income. Kempczinski stressed that offering good value is becoming increasingly important for McDonald’s customers.