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McDonald’s posted the greatest drop in American sales since the height of the COVVI-19 pandemic five years ago, because the uncertainty caused by Donald Trump’s prices weighs heavily on the feeling of consumers.
Sales with comparable stores on its domestic market fell 3.6% over a year in the quarter that ended in March, mainly pulled by the number of clients lower, said the largest chain of hamburgers in the world by publishing results on Thursday.
The fall in sales in restaurants open for at least a year came when consumers’ feeling fell at the end of the quarter after the American president’s samples trembled the markets and aroused worries among the Americans about their job prospects.
The director general of McDonald’s, Chris Kempczinski, noted in a statement that “consumers today are struggling with uncertainty”. Kempczinski later declared in a call with analysts that “geopolitical tensions added to uncertainty and to alleviate the feeling of consumers more than what we expected”.
He added: “We are not immune to the volatility of the industry or the pressures that our consumers are confronted.”
Analysts expected a more modest drop of 1.4% of comparison sales McDonald’s About 14,000 American restaurants, according to Visible Alpha. The data marked the second consecutive quarter for comparable sales in the United States to decline, and it was the largest since a dive of 8.7% in mid-2010.
According to KEMPCZINSKI, visits to the American fast food industry fell by almost 10% in the first quarter, according to KEMPCZINSKI. Traffic has also dropped at a similar pace among intermediate income consumers, suggesting an extension of economic concerns among Americans.
“People are more judicious to reduce visits,” said Kempczinski, adding that some customers were now preparing breakfast at home rather than eating at McDonald’s.
McDonald’s actions fell 2% on Thursday.
The data follows Lower American quarterly sales In Starbucks and Chipotle Mexican Grill food and drinks. On the other hand, the Taco Bell US unit of Yum Brands declared a 9% increase in sales with comparable stores.
McDonald’s continued to extend promotions such as “$ 5 meal case”Introduced last summer as it seeks to attract consumers to its restaurants. It also deployed limited -term offers such as the Big Mac combo, fries, drinks and collecting characters linked to the exit of A minecraft film This month.
World comparable sales have decreased by 1% over a year in the first quarter, with weakness in countries, including the United Kingdom, partly compensated by higher sales on the markets such as Japan and the Middle East. Excluding the additional day of 2024, world sales were said to have been unchanged during the quarter.
Revenues dropped 3% to $ 5.96 billion, missing the estimate of $ 6.12 billion in a visible alpha survey. Net profit also underpins expectations with a decrease of 3% to $ 1.87 billion.
