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Updated February 5th, 2024 at 21:24 IST

McDonald's suffers first sales miss in 4 years as overseas markets falter

The company attributed the weakness to the Israel-Hamas conflict, which led to protests against Western brands, as well as economic woes in China and India.

Business Desk
McDonald's
McDonald's | Image:Pixabay
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McDonald's sales miss: McDonald's reported its first quarterly sales miss in nearly four years, dragged down by weak performance in its international markets, particularly the Middle East, China, and India.
Comparable sales in the International Developmental Licensed Markets segment, which includes these regions, rose only 0.7 per cent, far below analyst estimates of 5.5 per cent.

The company attributed the weakness to the Israel-Hamas conflict, which led to protests and boycotts against Western brands, as well as ongoing economic woes in China and India.

Global same-store sales increased 3.4 per cent, missing estimates of 4.9 per cent and marking the slowest growth in three years. US same-store sales rose 4.3 per cent, slightly below expectations. Adjusted earnings per share of $2.95 beat estimates of $2.82.

McDonald's shares were down slightly in premarket trading. Analysts expressed concerns about the impact of the Middle East conflict on the company's long-term earnings, but remained positive on the stock due to its strong brand and global reach.

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McDonald's is facing challenges in its key overseas markets, which could hamper its growth in the near future. The company is still performing well in the US, but even there, traffic is starting to decline.

(With Reuters inputs.)

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Published February 5th, 2024 at 21:24 IST

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