It's the latest restaurant chain to report flagging or declining sales amid a worsening economic environment.
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McDonald's reported its worst quarterly sales for the United States since the height of the pandemic in 2020, the latest restaurant chain to be affected by America's turbulent economic environment.
The burger giant reported U.S. same-store sales fell 3.6%, the largest three-month drop since Q2 2020, when they plunged 8.7%. Forecasts had been for a decline of just 1.7%.
"Consumers today are grappling with uncertainty," McDonald's Chairman and CEO Chris Kempczinski said in a statement, as the chain cited lower guest counts.
In a follow-up call with investors, McDonald's executives said that traffic among middle-income diners fell by "nearly double digits" alongside an ongoing drop-off among low-income ones. As an example, they said more people appear to be skipping breakfast entirely to cut back on spending, or eating breakfast at home.
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On the call, company officials said that while the McDonald's brand hadn't been affected by worsening perceptions of the U.S. by overseas consumers, its internal surveys had picked up a notable uptick in anti-American sentiment, particularly among diners in northern Europe and Canada.
"We have seen ... an increase in people in various markets saying they’re going to be cutting back on purchases of American brands," they said.