McDonald’s Corporation has reported a surprising dip in global sales for Q2 2024, reflecting the impact of mounting economic pressures. The fast-food giant, usually resilient in tough times, experienced declines across all markets.
The company’s operating income fell by 6%, a sharper drop compared to its 5% revenue decline, suggesting squeezed profit margins. For the first time in recent years, McDonald’s saw a 1% decrease in global comparable sales, with notable drops in the U.S. (0.7%), Europe (1.1%), and other international markets (1.3%).
The U.S. market saw a decrease in guest counts, although higher menu prices somewhat offset this decline. Europe, particularly France, faced significant challenges, while China and the Middle East also underperformed.
Despite a small revenue increase, McDonald’s reported a significant decline in profitability, with earnings per share falling by 11% to $2.80. The company also incurred $97 million in impairment and $57 million in restructuring charges, impacting short-term results.
On a positive note, McDonald’s digital and loyalty programs showed progress, with substantial sales from loyalty members. The coming quarters will be critical as McDonald’s adjusts its strategies to navigate the current economic landscape and seek to regain its growth momentum.