ALBAWABA – McDonald’s second quarter report reveals that global same store sales had a decline for the first time in almost four years, as demands for a boycott continued, and customers who were distressed by inflation decided to avoid dining out or choose for less expensive alternatives.
For the first time since the fourth quarter of 2020, when the pandemic forced millions of people to remain at home and locked amenities, sales at locations that had been operating for at least a year dropped by 1 percent during the period of April to June.
In spite of the fact that it had fewer customers, McDonald's claimed that those who visited spent more money as a result of price hikes.
The decline came irrespective of the fact that the hamburger business was giving discounts in an effort to win back consumers who were concerned about cost and those who had boycotted the restaurant due to the company’s stance of Israeli aggression on Gaza and constant Israeli army support.
CEO of McDonald’s, Chris Kempczinski, said that the company had been obliged to engage in a "comprehensive rethink" of pricing as a consequence of the dismal performance, according to BBC, informing investors that the chain will rely on promotions in an effort to reverse the downward trend in sales.
“We know how to do this,” he said, adding “we wrote the playbook on value and we are working with our franchisees to make the necessary adjustments.”
Earlier in June, Kempczinski went on LinkedIn to write about the devastating effect the boycott calls have had on the company, stating that “several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war,” claiming that such calls are “disheartening and ill-founded.”
