McDonald's earnings report released: First time in 4 years...
Sales for the U.S. fast-food chain McDonald's fell by 1 percent in the second quarter of this year, marking the first decline since 2020. The company had been negatively impacted by boycotts targeting international firms perceived as supporting Israel.
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McDonald's has released its earnings report for the second quarter of 2024.
According to the company's statement, McDonald's global comparable sales decreased by 1 percent in the second quarter of this year.
This marks the first time the company's sales have recorded a decline since the fourth quarter of 2020.
During this period, the restaurant chain's U.S. sales fell by 0.7 percent, sales in the "International Operated Markets" segment dropped by 1.1 percent, and sales in the "International Developmental Licensed Markets" segment—where the company licenses franchising rights to strategic partners—declined by 1.3 percent.
'CONTINUED IMPACT OF THE WAR IN THE MIDDLE EAST, NEGATIVE SALES IN CHINA...'
The earnings statement noted that "the continued impact of the war in the Middle East and negative comparable sales in China were offset by positive comparable sales in Latin America and Japan."
McDonald's revenue remained nearly flat in the second quarter of the year compared to the same period last year, reaching 6.49 billion dollars. The company's revenue fell short of market expectations of 6.61 billion dollars for this period.
McDonald's net income decreased by 12 percent in the second quarter, falling to 2.02 billion dollars. The company had recorded a profit of 2.31 billion dollars in the same period last year.
MARKET EXPECTATIONS NOT MET
The company's earnings per share, which were 3.15 dollars in the second quarter of last year, also fell to 2.80 dollars in the same period of 2024. The company's earnings per share also failed to meet market expectations of 3.08 dollars for this period.
In his statement regarding the financial results, McDonald's CEO Chris Kempczinski noted that consumers are becoming more selective with their spending.
The financial results of McDonald's, which became a target of boycotts due to Israel's attacks on Gaza, had been negatively affected by the conflicts in the Middle East in the last quarter of last year and the first quarter of this year.
The restaurant chain's revenue fell below market expectations in the last quarter of last year as the conflicts in the Middle East impacted the company's sales, while sales in the market group that includes its Middle Eastern restaurants declined in the first quarter of this year.