Connected To Boycott? McDonald’s Global Sales See Biggest Decline In 4 Years (imageMcDonaldsCorp)
McDonald’s reported another biggest drop in its sales. Despite attempts to lure customers back to the value meals, the fast-food giant faces dwindling demands. Between July and September, McDonald’s global sales fell between 1.5%. The drop is marked as a greatest decline in four years, and is more than twice the size forecast by analysts.
The sale fell 1% from April to June this year. The recent downfall is first two consecutive contractions marked since COVID 19 crisis in 2020.
While US marked a return to growth a 0.3% rise in sales, international markets were still down by 2.1%. The net profit fell by 3% to $2.3 billion.
Massive boycott due to Hamas-Israel war has been perceived to be at the top of McDonald’s dwindling sales. Its pro-Israeli stance and alleged financial ties to the country cause boycott ad protests against the company.
Also Read: McDonald’s Blames Israel-Hamas War For The Dip In Sales Target
It is believed that sluggish spending by consumers in Europe, US, and China in recent months, mainly due to people being weary from years of high food inflation looking for cheaper meal fixes or staying at home is one among the reasons of the fall in sales.
In April this year, the company bought 30-year franchise from Alonyal, taking back ownership of 225 restaurants employing more than 5,000 people. Alonyal had announced shortly after the 7 October attack from Hamas, that it would donate free meals to the Israeli Occupation Force.
The US-based fast food chain has tried several methods to woo back customers with steps including £5 meal deals in the UK and $5 limited-time promotions in the US. Rivals including Wendy’s, Burger King and Taco Bell have also resorted to meal bundles and limited-time offers to get customers.
Also Read: Boycott Calls Hurting Business Sentiments: McDonald’s CEO
McDonald’s chief executive, Chris Kempczinski, said the company was “laser-focused” on everyday value and affordability as customers “continue to be mindful about their spending”. It also extended the $5 meal deal in the US, launched in June, until December in most locations.
The recent E. Coli outbreak linked to the Quarter Pounders also added to drop in the sale. At least one person was killed and 75 people were infected. Kempczinski apologised for the issue and said that the situation appeared to be contained and he was “confident in the safety of eating at McDonald’s”.
