Thrifty consumers: McDonald's to record first global sales drop in years
The global net profit slipped by 12 percent to 2.02 billion dollars in the April to June period. McDonald's had previously benefited from the shift of consumers from pricier restaurants to more affordable fast-food options during the high inflation rates. However, McDonald's has recently struggled with lower-income customers "dropping out" of the market by eating at home or finding other ways to save, as reported by CEO Christopher Kempczinski. This trend continued into the current quarter and is expected to persist, said CFO Ian Borden. McDonald's is now focusing on winning back customers through advertising campaigns and new, particularly affordable menu offerings.
The following financial decline in McDonald's net profit was revealed in the April to June period. This trend of lower-income customers shifting their dining habits was also mentioned by CEO Christopher Kempczinski in previous discussions.
