By Emir Yildirim
ISTANBUL (AA) – The fast-food giant McDonald’s said on Monday that its global sales fell 1% in the second quarter of the year.
McDonald’s’ US sales decreased 0.7%, according to the Big Mac-maker’s earnings release for the second quarter, as the “guest counts” fell, and “strategic menu price increases” resulted in losses.
Meanwhile, the fast food giant’s sales in the International Operated Markets segment fell 1.1% due to “negative comparable sales across a number of markets, driven by France,” the report showed.
At the same time, sales in the International Developmental Licensed Markets segment decreased 1.3%.
“The continued impact of the war in the Middle East and negative comparable sales in China more than offset positive comparable sales in Latin America and Japan,” the report revealed.
As for the consolidated revenues of McDonald’s, the figure reached $6.5 billion, up 1% on an annual basis, below market expectations.
The report showed that the net income of McDonald’s decreased 12% to a little over $2 billion in the second quarter of the year.
As boycotts worldwide against companies linked to Israel continue since the start of the war in Gaza, McDonald’s was financially affected due to its stance in support of Israel in the fourth quarter of 2023.
The 1% decline in global sales in the second quarter of 2024 marks the first decline in McDonald’s’ finances since 2020.