Setback For McDonald's As Global Sales Fall Worldwide For First Time In 4 Years

New Delhi: McDonald’s has reported its first drop in global sales in over four years as the multinational fast food chain attributed the fall to its “deal-thinking” global consumers who have become "very discriminating."

McDonald’s Net Income Drops By 12%

McDonald's reported a 1 per cent decline in global sales for the April-June period on Monday, marking its first drop since the final quarter of 2020. Previous decline was reported by them on the backdrop of the COVID-19 pandemic and related government restrictions, which had shuttered businesses and confined millions of people to their homes.

The fast food chain giant said that it would be more selective with price increases to protect profitability.

A slower-than-anticipated recovery in China and the ongoing conflict in the Middle East negatively impacted McDonald's performance in its segment of restaurants operated by local partners, resulting in a 1.3 percent sales decline compared to a 14 percent increase the previous year.

Consumer Sentiments Remain Low 

CEO Chris Kempczinski said there is a lot more deal-thinking from consumers who have become "very discriminating". 

"Consumer sentiment in most of our major markets remains low," he said.

McDonald’s ‘Fake Cheese’ Row 

Recently, India's food regulatory body Food Safety and Standards Authority of India (FSSAI) has confirmed that McDonald's India uses 100 per cent real cheese, Westlife Foodworld said in a stock exchange intimation in March this year. 

"The verification confirms the brand's assertion that it uses 100 per cent real cheese and that it does not use any cheese analogues or substitutes in any of its products," said the company.

Westlife Foodworld recently came under fire after one of its outlets reportedly used substitutes in place of real cheese in burgers and nuggets at an outlet in Maharashtra, following which the state government announced an inspection.