McDonald’s US sales decline for first time in six quarters despite value push
The slowdown is testing the burger chain’s efforts to win back lower-income diners with value meals.
McDonald's experienced its first decline in US sales after five quarters of growth, despite a value push, according to its latest report. Financially strained consumers curtailed dining out, intensifying a slowdown that has challenged McDonald's efforts to attract budget-conscious diners with affordable options. The chain introduced a menu priced under US$3 (S$3.80) and a US$4 breakfast deal as higher living costs pushed customers towards cheaper alternatives from competitors, convenience stores, and home-cooked meals.
McDonald's US sales dropped 0.2% in the quarter ending September 30, falling short of analysts' expectations of a 0.1% decline. Comparable sales across McDonald's global operations rose 1.5% as anticipated. Adjusted earnings per share climbed to $3.57, higher than the $3.22 reported a year earlier, owing to a roughly 4% reduction in operating costs and expenses.
Despite a return to McDonald's Monopoly promotion and Halloween-themed Boo Buckets in October, visits to McDonald's restaurants remained below year-ago levels, falling by 4.6% in the three months to September 30, as per Placer.ai data. CEO Chris Kempczinski expressed optimism in a statement on November 4, stating that the company's intervention on value measures had resulted in improvement during the latter part of the quarter.
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