financetom
Business
financetom
/
Business
/
McDonald's sales miss estimates as customers cut back spending
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
McDonald's sales miss estimates as customers cut back spending
Apr 30, 2024 4:58 AM

(Corrects to "miss" from "misses" in headline)

(Reuters) - McDonald's fell short of Wall Street estimates for first-quarter sales on Tuesday as budget-conscious consumers cut back on restaurant meals and the Middle East conflict weighed on the burger chain's international sales.

Global comparable sales growth slid for the fourth straight quarter to 1.9%, with the company saying consumers turned "more discriminating with every dollar they spend". Analysts had estimated a 2.35% rise, according to LSEG data.

The company has raised prices by roughly mid- to high-single-digit percentage over the last year in response to a rise in costs of eggs and other raw items.

Comparable sales in the company's International Developmental Licensed Markets segment, which made up 10% of its overall revenue in 2023, declined 0.2%, offsetting positive trends from Japan, Latin America and Europe. Analysts had expected a 0.98% rise for the unit.

Earlier in March, McDonald's CFO Ian Borden had warned of a sequential fall in international sales in the first quarter, pressured by the conflict in the Middle East and a sluggish Chinese economy, its second-largest market after the United States.

Higher competition for breakfast hour spending in the United States has prompted the burger giant to lean on low-priced menu choices including breakfast value bundles and a Dollar Menu under the $4 price point.

First-quarter same-store sales grew 2.5% in the United States, sharply lower than a 12.6% growth last year and slightly below estimates of a 2.55% growth, signaling that cash-strapped Americans remained picky about offers at fast-food chains amid still-high inflation.

McDonald's posted quarterly adjusted per-share profit of $2.70. Analysts had estimated $2.72, according to LSEG data. Total operating costs and expenses increased 2% to $3.43 billion. (This story has been refiled to change 'misses' to 'miss' in the headline)

(Reporting by Savyata Mishra in Bengaluru; Editing by Saumyadeb Chakrabarty)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Bumble forecasts second-quarter revenue below estimate
Bumble forecasts second-quarter revenue below estimate
May 26, 2025
May 7 (Reuters) - Bumble forecast second-quarter revenue below analysts' estimate on Wednesday, signaling that the dating app operator's turnaround is taking longer than expected to yield results. The company expects second-quarter revenue to be between $235 million and $243 million, compared with analysts' average estimate of $243 million, according to data compiled by LSEG. ...
Boeing taps Wisk Aero CEO to head commercial airplane product development 
Boeing taps Wisk Aero CEO to head commercial airplane product development 
May 26, 2025
SEATTLE -Boeing ( BA )-owned Wisk Aero announced Wednesday that its CEO Brian Yutko is leaving to take over product development for Boeing's ( BA ) commercial airplanes division. In his new role, Yutko will still oversee Wisk, which is developing an autonomous air taxi, Boeing Commercial Airplanes' head of product strategy Mike Sinnett told employees in an internal memo shared...
MercadoLibre beats profit estimates in first quarter as Argentina business booms
MercadoLibre beats profit estimates in first quarter as Argentina business booms
May 26, 2025
SAO PAULO, May 7 (Reuters) - Latin American e-commerce giant MercadoLibre ( MELI ) posted on Wednesday a 44% net profit increase in the first quarter from a year earlier, above analysts' estimates as operations in Argentina bounced back. MercadoLibre ( MELI ), Latin's America most valuable company by market capitalization, posted a net profit of $494 million for the...
Chip tech provider Arm forecasts first-quarter revenue below estimates
Chip tech provider Arm forecasts first-quarter revenue below estimates
May 26, 2025
May 7 (Reuters) - Arm Holdings ...
Copyright 2023-2025 - www.financetom.com All Rights Reserved