McDonald’s has reported its first global sales drop in over three years, with a 1% decline for the April-June period. This is the first downturn since late 2020 when pandemic-related restrictions had previously impacted sales.
The fast-food giant’s decline is attributed to inflationary pressures causing consumers to seek cheaper dining options and cut back on eating out. Additionally, McDonald’s has been hit hard by boycotts in the Middle East and Asia, where the chain is criticized for its perceived support of Israel.
This backlash has led to substantial financial losses, with the company losing approximately $7 billion within hours of the boycott campaign’s peak.
Also read: Starbucks Decline Hits $13B Loss Amid Boycott, CEO Warns
Shares of McDonald’s plummeted by over 3% during trading in March, marking a significant decline. The company’s Chief Financial Officer, Ian Borden, acknowledged that ongoing conflicts and reduced demand in China are expected to further affect international sales.
The boycotts and the global economic environment have posed severe challenges for McDonald’s, which is facing one of its most challenging financial periods in recent years.
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