• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick McDonald’s rising prices pushing some diners away
Editor's Pick

McDonald’s rising prices pushing some diners away

by May 1, 2024
by May 1, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

McDonald’s reported mixed quarterly results Tuesday as its reorganization weighed on its profit and boycotts hurt its Middle Eastern sales.

The company also continues to see consumers worldwide pull back on their restaurant spending.

“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending, which is putting pressure on the [quick-service restaurant] industry,” CEO Chris Kempczinski said on the company’s conference call.

He added that McDonald’s has to be “laser focused” on affordability to attract diners.

Shares of McDonald’s fell 1.7% in premarket trading.

McDonald’s reported first-quarter net income of $1.93 billion, or $2.66 per share, up from $1.8 billion, or $2.45 per share, a year earlier. The company recorded a pretax charge of $35 million tied to its reorganization, which was announced more than a year ago.

Excluding restructuring charges, the fast-food giant earned $2.70 per share.

Net sales rose 5% to $6.17 billion. The company’s global same-store sales increased 1.9% in the quarter, falling short of StreetAccount estimates of 2.1%.

McDonald’s reported U.S. same-store sales growth of 2.5%, missing expectations of 2.6%. The chain said that the average check grew thanks to higher menu prices. But by raising prices, McDonald’s has also scared away some of its low-income customers.

The chain has rolled out an improved version of its burgers nationwide, with advertising featuring its Hamburglar mascot, as it tries to convince customers that its prices are worth it. The company’s chefs have also been working on a larger burger, which it plans to test in several markets later this year before a global launch.

Demand in the company’s international developmental licensed markets was even weaker. McDonald’s said the segment’s same-store sales fell 0.2%, marking the first time since the pandemic that one of the chain’s divisions reported a same-store sales decline.

The segment includes restaurants in the Middle East, which have been roiled by the Israel-Hamas war and related boycotts, which started after McDonald’s Israeli licensee offered discounts to soldiers. Earlier this month, McDonald’s bought the 225 restaurants operated by its Israeli franchisee.

However, the company said that same-stores sales in other licensed markets, like Japan and Latin America, grew for the quarter. McDonald’s international operated markets segment, which includes Germany and the United Kingdom, reported same-store sales growth of 2.7%. France’s same-store sales declined in the quarter.

This post appeared first on NBC NEWS
You Might Also Like
  • Palm Beach housekeepers are making $150,000 a year due to massive demand from the wealthy
  • Business is good in ‘Vacationland.’ It would be even better with more housing.
  • CVS Health to no longer sell decongestants with phenylephrine
  • The 10 worst states to retire in the U.S. No. 1 isn’t California or New York
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Are the Chinese about to ‘deal a devastating blow’ to America?
next post
Walmart launches new grocery brand as it tries to hang on to inflation-fueled growth

You may also like

Volkswagen workers in Tennessee vote to join UAW in historic...

April 20, 2024

Free cash programs spread as more cities expand the anti-poverty...

April 14, 2024

American Express CFO says spending picked up at year-end, thanks...

January 25, 2025

Pending home sales in April slump to lowest level since...

June 1, 2024

Stock market has worst day since 2022 as Tesla, Google...

July 25, 2024

Target rolls back DEI initiatives, the latest big company to...

January 25, 2025

Trump tariffs, tax cuts and interest rates likely to fuel...

May 2, 2024

The uncommon lending practices behind Silicon Valley Bank’s woes

March 19, 2023

The Eclipse Foundation Releases 2022 IoT and Edge Commercial Adoption...

February 23, 2023

Lego is reinventing its iconic brick sets and keeping the...

December 24, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Dick’s Sporting Goods stands by full-year guidance — even with tariffs looming

      May 28, 2025
    • Top Sectors to Watch + The 18 SMA Setup Every Trader Should Know

      May 28, 2025
    • Macy’s CEO says retailer will hike some prices as tariffs cut into profits

      May 28, 2025
    • 23andMe to delist from Nasdaq, deregister with SEC

      May 28, 2025
    • Walmart fined for shipping realistic toy guns to New York, violating state law

      May 28, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,763 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,449 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,427 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,305 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,101)
    • Investing (538)
    • Stock (2,576)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Dick’s Sporting Goods stands by full-year guidance — even with...

      May 28, 2025
    • Top Sectors to Watch + The 18 SMA Setup Every...

      May 28, 2025
    • Macy’s CEO says retailer will hike some prices as tariffs...

      May 28, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,101)
    • Investing (538)
    • Stock (2,576)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Nike expects more sales declines as...

    July 1, 2024

    Nvidia passes Apple as world’s most...

    November 7, 2024

    Charter rolls out new Spectrum pricing...

    September 17, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here