McDonald’s sees drop in sales for the first time since 2020

McDonald’s saw a dip in global sales last quarter for the first time since the pandemic. Its US same-store sales between April and June fell almost 1% year over year as inflation-weary customers cut back on spending, the company reported yesterday.

Net income in the June quarter was $2.02 billion, down 12% from the same period last year.

The fast food giant lists reduced foot traffic and a pullback on ordering additional items (or going for cheaper alternatives) as the primary reasons for the slowing sales.

CEO Chris Kempczinski says low-income consumers are avoiding fast food visits since it is now pricier than groceries.

But, the company’s $5 meals launched in June are performing well, said Kempczinski.

Not just McDonald’s
Other fast food chains like Domino’s Pizza and Chipotle are also experiencing a drop in sales as cost-conscious consumers make fewer visits. Wendy’s, Burger King and Taco Bell are leaning toward low-priced meals to attract some of these customers.