McDonald’s global sales hit biggest drop in four years

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Experienced global fast food chain McDonald’s In the third quarter of this year, its global sales unexpectedly fell by 1.5%, the largest decline in four years. Although the company tried to attract customers in France and the United Kingdom through low-priced products, it still suffered losses. People’s needs for value-for-money meals.

There are several main reasons for McDonald’s sales decline, including lower customer visits in key markets such as the United States, France, the United Kingdom, the Middle East and China, as consumers shift to cooking at home. The decline of 2.1% was particularly affected by weak demand in France and the United Kingdom, which was also reflected in the company’s net profit, which fell by 3% to $2.3 billion.

McDonald’s faces additional challenges in foreign markets, particularly in China, where consumers have cut back on spending, as well as the conflict in the Middle East, which has seen McDonald’s and other Western food chains face boycotts over their stance on regional issues. The company sparked outrage from some Islamic countries after it provided free meals to Israeli soldiers. The pressure prompted McDonald’s to acquire all its branches in Israel and sign a new deal with Alonial. branches.

McDonald’s is trying to respond to the drop in demand by introducing affordable meals, such as a four-course meal for £5 in the UK, which gives customers a variety of options compared to buying each meal individually and is also available. Save on price. This step is carried out within the framework of a new strategy to attract customers, especially those with limited income.

Challenges facing McDonald’s include not only slowing sales but also health concerns. Most recently, the company was forced to stop serving Quarter Pounder sandwiches at 20% of its restaurants in the U.S. following an outbreak of E. coli bacteria that infected at least 75 people and killed one, a preliminary investigation showed. is the chopped onion used in the sandwich, while … excluding beef as a potential source of contamination.

These challenges are reflected in McDonald’s stock price, which fell about 7% last week, continued to fall 2% before the opening, and then recovered to rise 1%. It appears that the company faces major challenges in resuming consumption. and pressures from sensitive market policies.

yaqouba

2 minutes read