McDonald’s earnings miss estimates as boycotts weigh on Middle Eastern sales

  • 📰 CNBC
  • ⏱ Reading Time:
  • 55 sec. here
  • 11 min. at publisher
  • 📊 Quality Score:
  • News: 56%
  • Publisher: 72%

Breaking News: Earnings News

Markets,Breaking News: Markets,Earnings

McDonald's shares have fallen 7.5% over the last year, dragging its market value down to $197 billion.

Boycotts over the conflict in Gaza weighed on the chain's Middle East sales again.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:Revenue: $6.17 billion vs. $6.16 billion expected

McDonald's reported first-quarter net income of $1.93 billion, or $2.66 per share, up from $1.8 billion, or $2.45 per share, a year earlier. The company recorded a pre-tax charge of $35 million tied to its reorganization, which was announced more than a year ago.Net sales rose 5% to $6.17 billion. The company's global same-store sales increased 1.9% in the quarter, falling short of StreetAccount estimates of 2.1%.

McDonald's reported U.S. same-store sales growth of 2.5%, missing expectations of 2.6%. The chain said that the average check grew thanks to higher menu prices. But by raising prices, McDonald's has also scared away some of its low-income customers. Demand in the company's international developmental licensed markets was even weaker. McDonald's said the segment's same-store sales fell 0.2%, marking the first time since the pandemic that one of the chain's divisions reported a same-store sales decline.However, the company said that same-stores sales in other licensed markets, like Japan and Latin America, grew for the quarter.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines