American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

McDonald’s rising prices pushing some diners away

by admin May 2, 2024
May 2, 2024
McDonald’s rising prices pushing some diners away

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

0
FacebookTwitterGoogle +Pinterest
previous post
Walmart to close 51 clinics as it shutters its entire Walmart Health division
next post
Paramount says CEO Bob Bakish is stepping down, will be replaced by a trio of executives

Related Posts

Polycab India shares fall over 5% despite strong...

October 18, 2024

Tesla will lay off more than 10% of...

April 18, 2024

ServiceNow stock is expensive; does it have a...

October 30, 2024

Women’s college basketball final expected to set new...

April 7, 2024

Mortgage refinance demand jumps to a 2-year high,...

July 18, 2024

US stocks open in red amid Trump’s new...

May 24, 2025

Elon Musk’s X sues advertisers over alleged ‘massive...

August 7, 2024

Nippon Steel CEO says US golden share in...

June 19, 2025

Nikkei 225 forecast as yen soars; Softbank, Nissan,...

February 9, 2025

‘One reason’ that’s disabling Trump tariffs from reviving...

May 10, 2025

    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.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.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 © 2025 americaninvesthub.com | All Rights Reserved