McDonald's sales are slumping because people can't afford fast-food
SUMMARY
McDonald's global sales declined in Q2 2024, the first drop since 2020, as inflation-weary consumers cut back on dining out. U.S. same-store sales fell nearly 1% from April to June, driven by reduced foot traffic among low-income customers. Rising food, labor, and paper costs, increasing up to 40% in some markets, forced McDonald's to raise prices. The company lagged behind competitors like Burger King and Wendy's in introducing value deals, launching a $5 meal promotion later. Additionally, competition from grocery stores, where prices have stabilized, has affected McDonald's sales. Analysts suggest fast-food chains need to adjust pricing strategies to attract budget-conscious consumers and compete with grocery stores.
