McDonald’s CEO Chris Kempczinski says low-income consumers eating at home and finding other ways to economise.
McDonald’s has reported its first drop in global sales in over three years as inflation-weary consumers seek out cheaper options and cut back on eating out.
McDonald’s worldwide sales fell 1 percent in the April-June period, the fast food giant said on Monday, the first drop since the last quarter of 2020, when the COVID-19 pandemic and government restrictions closed businesses and kept millions of people at home.
Outlets in so-called international developmental licensed markets, which are operated by licensees, saw a steeper decline, with sales falling 1.3 percent amid weak consumer sentiment in China and boycotts in the Middle East over the fast-food chain’s perceived support for Israel.
McDonald’s CEO Chris Kempczinski said consumers had become “very discriminating” about their spending after the company had previously benefitted from consumers who “traded down” to the fast food chain from more expensive eateries.
