Cheeseburgers have become too expensive
McDonald’s reported a drop in sales in the second quarter of 2024, the first time the fast-food chain has seen a decline in 13 quarters. According to the company’s CEO, inflation has had a significant impact on consumption patterns and more and more people are choosing to eat at home as it is more cost-effective for the middle class.
Challenges due to inflation and labor shortages
McDonald’s produced weaker results than Wall Street expected. Due to inflation, lower income consumers prefer to eat at home and avoid fast food restaurants. Global sales fell 1 percent in the second quarter, in contrast to analysts’ expectations for a 0.53 percent increase.
McDonald’s, Burger King and other fast-food chains tried to counter the decline by introducing more expensive but limited-time offers. McDonald’s introduced its $5 lunch offer in its US restaurants in June, but the revenues from this will not be visible until the third quarter.
The value-for-money food wars
Low-income consumers hit by inflation cut back on restaurant visits, which had a significant impact on McDonald’s sales. According to the company’s CEO, Chris Kempczinski, consumers are spending their money more and more consciously. Still, McDonald’s maintained its 2024 operating margin forecast in the mid-to-upper 40 percent range.
Related news
Tamás Éder: “The goal is increasing efficiency and promoting robotics and automated technologies”
We asked Tamás Éder, president of the Federation of Responsible…
Read more >Inflation in Italy accelerated to 1.7 percent in June
In Italy, consumer prices rose by 1.7 percent year-on-year in…
Read more >MNB Director: The central bank expects 4.7 percent annual inflation this year
Inflation is expected to exceed the central bank’s tolerance band…
Read more >Related news
Corporate leaders’ commitment to sustainability at record level
According to the latest data from the K&H Sustainability Index,…
Read more >FAO food price index rose slightly in June due to higher prices of meat, dairy products and vegetable oils
The Food and Agriculture Organization of the United Nations (FAO)…
Read more >What can cause the price of a wine to increase tenfold?
There are fewer of them worldwide than the number of…
Read more >