McDonald’s same-store sales fall for first time since pandemic, profit drops 12%

McDonald’s reported weak sales in the second quarter as consumers in the U.S. and China became increasingly price-conscious and went to restaurants less often.

Sales at locations open at least a year fell 1% globally across all business segments in the April-June period, the first decline since the final quarter of 2020, when the pandemic shuttered stores and millions stayed home.

In the U.S., same-store sales fell nearly 1 percent. McDonald’s saw fewer customers but said those who did come spent more because of price increases. The company also reported lower store traffic in China, France and the Middle East, where people have boycotted McDonald’s over perceptions that it supports Israel in the war in Gaza.

McDonald’s warned in April that more of its inflation-weary customers were seeking better value and affordability. The Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, late in the financial reporting period.

Quarterly revenue was flat at $6.5 billion, just below the $6.6 billion Wall Street had expected, according to analysts polled by FactSet.

The company’s net income fell 12 percent to $2 billion, or $2.80 per share. Excluding one-time items such as restructuring costs, McDonald’s earned $2.97 per share. That was far short of the $3.07 per share earnings that industry analysts had forecast.

McDonald’s shares fell less than 1% in pre-market trading.