Influencer Editorial Team
McDonald’s, the global fast-food giant, reported quarterly results below expectations in the first quarter, missing Wall Street estimates for sales amidst economic pressures and geopolitical tensions.
Despite posting a quarterly adjusted per-share profit of $2.70, slightly below analysts’ estimates of $2.72, the company experienced a 1.9% increase in worldwide same-store sales, falling short of the forecasted 2.1%. This was attributed to budget-conscious consumers cutting back on restaurant meals, particularly in international markets affected by the Middle East conflict.
In the United States, McDonald’s witnessed a 2.5% rise in same-store sales, with customers favoring low-priced menu options such as breakfast value bundles and items priced under $4. However, this growth was notably lower than the 12.6% increase reported in the previous year, reflecting consumer caution amid inflation concerns.
Internationally, same-store sales declined slightly in McDonald’s franchised markets, notably in regions like the Middle East, Indonesia, and Malaysia, where boycotts against the brand persisted due to perceived support for Israel. To address this, McDonald’s announced the acquisition of its Israeli franchisee, Alyonal Limited, taking control of the country’s 225 restaurants.
McDonald’s revenue rose 5% to $6.17 billion, aligning with Wall Street estimates, while net income increased by 7% to $1.93 billion. However, the company’s performance underscores the impact of global economic challenges and geopolitical tensions on consumer behavior and restaurant sales.
