McDonald’s is reconsidering its pricing strategy after the fast-food giant reported its first sales slump since 2020 in the second quarter. Experts said budget-conscious Americans are eating at home more often due to higher prices at fast food chains.
“This shortfall was driven by sluggish traffic, with consumers shifting a larger share of meal occasions toward grocery stores,” Morningstar equity analyst Sean Dunlop said in a research note.
This summer, McDonald’s released a $5 meal promotion to drive more foot traffic, though competitors have also launched similar deals.
Point phone camera here
McDonald’s CEO Chris Kempczinski expressed confidence in the company’s strategy, “Accelerating the Arches.” Kempczinski emphasized the focus on reliable, everyday value and strategic growth areas, such as chicken and loyalty programs, especially as consumers become more selective with their spending.
He also said customers can expect more discounts in an effort to bring more people in and stop the sales decline.
[KARAH RUCKER]
MCDONALD’S IS RECONSIDERING ITS PRICING STRATEGY AFTER THE FAST FOOD GIANT REPORTED ITS FIRST SALES SLUMP SINCE 2020 IN THE SECOND QUARTER.
EXPERTS SAY BUDGET-CONSCIOUS AMERICANS ARE EATING AT HOME MORE OFTEN DUE TO HIGHER PRICES AT FAST FOOD CHAINS.
THIS SUMMER, MCDONALD’S RELEASED A 5-DOLLAR MEAL PROMOTION TO DRIVE MORE FOOT TRAFFIC, THOUGH COMPETITORS HAVE ALSO LAUNCHED SIMILAR DEALS.
MCDONALD’S CEO SAYS CUSTOMERS CAN EXPECT MORE DISCOUNTS IN AN EFFORT TO BRING MORE PEOPLE IN – AND STOP THE SALES DECLINE.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
MOST POPULAR
-
Getty Images
NORAD Santa tracker's history goes back nearly 70 years
-
Getty Images
Massachusetts Gov. Healey clarifies state’s stance on migrants
-
Getty Images
Drug lord Fabio Ochoa released, returns to Colombia after 25 years in US prison
-
Getty Images
President-elect Trump wants to rename Denali Mount Mckinley