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McDonald’s Earnings Dragged Down By Inflation And Israel-Hamas War Boycotts

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Inflation and war in the Middle East took some of the shine off the Golden Arches in the first quarter of the year.

McDonald’s rarely misses earnings forecast. Shares of the fast-food company slid in early morning trading following the results but were nearly flat by midday even while the broader market slumped. Inflation weighs particularly heavily on lower-income families. The company has noted that lower-income customers are visiting its burger joints less frequently and spending less per visit.

McDonald’s has faced rising labor costs from a combination of a tight labor market and minimum wage hikes. Several states raised their minimum wage last year, including California, which hiked its minimum wage for fast food workers to $20 an hour.

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