(Reuters) – McDonald’s reported first-quarter sales on Tuesday that fell short of Wall Street forecasts, as a drop in demand and conflict in the Middle East weighed on the group’s international sales.
Global same-store sales growth slowed for the fourth consecutive quarter to 1.9% due, according to the fast-food chain, to consumers “demanding more for every dollar they spend”.
Analysts were expecting an increase of 2.35%, according to LSEG data.
On Wall Street, McDonald’s shares fell 0.85% to 271.22 euros at 1:53 p.m. GMT.
Same-store sales of the company’s international franchisees, which accounted for 10% of its overall revenue in 2023, fell 0.2%, despite positive trends in Japan, Latin America and Europe .
Analysts expected an increase of 0.98% for this division.
In March, McDonald’s Chief Financial Officer Ian Borden warned of a sequential decline in international sales in the first quarter, pressured by conflict in the Middle East and a sluggish economy in China, the second largest. market for the group after the United States.
At the start of the year, CEO Chris Kempczinski reported a “significant commercial impact” due to the conflict in the Middle East, as well as “misinformation associated” with the brand.
“The impact of the Middle East conflict was likely significant on McDonald’s comparable sales, as the company cited it as the primary reason its segment (international franchisees) saw a decline comparable sales year over year,” commented Matthew Goodman, an analyst at the M Science research group.
Burger King owner Restaurant Brands International, on the other hand, beat expectations in terms of quarterly results on Tuesday, while Domino’s Pizza benefited from its loyalty program.
(Writing by Savyata Mishra in Bangalore, French version Kate Entringer, edited by Kate Entringer)
Copyright © 2024 Thomson Reuters