29.07.2024 17:30
Due to Israel's inhumane attacks on Gaza, McDonald's has become the target of boycotts, resulting in a significant decrease in sales. The company's sales dropped by 1 percent in the second quarter of 2024, marking the first decline since 2020.
The sales of American fast food restaurant chain McDonald's decreased by 1 percent in the second quarter of this year, marking the first decline since 2020.
The globally renowned restaurant chain McDonald's has announced its balance sheet for the second quarter of 2024. The data in the balance sheet did not go unnoticed.
FIRST DECLINE SINCE 2020
According to the statement made by the company, McDonald's global comparable sales decreased by 1 percent in the second quarter of this year. Thus, the company recorded a decline in sales for the first time since the fourth quarter of 2020.
During this period, the company's sales in the US decreased by 0.7 percent, sales in the "International Operated Markets" segment decreased by 1.1 percent, and sales in the "International Developmental Licensed Markets" segment, which includes restaurants where the company licenses its franchising rights to strategic partners, decreased by 1.3 percent. The balance sheet announcement stated that "the ongoing impact of the war in the Middle East and the negative comparable sales in China were offset by positive comparable sales in Latin America and Japan."
COMPANY'S REVENUE AND PROFIT BELOW EXPECTATIONS IN THE SECOND QUARTER
McDonald's revenue remained almost flat at $6.49 billion in the second quarter of this year compared to the same period last year. The company's revenue fell below market expectations of $6.61 billion for this period. McDonald's net income decreased by 12 percent to $2.02 billion in the second quarter. The company had made a profit of $2.31 billion in the same period last year.
The company's earnings per share, which was $3.15 in the second quarter of last year, also declined to $2.80 in the same period of 2024. The company's earnings per share also failed to meet market expectations of $3.08 for this period. McDonald's CEO Chris Kempczinski stated in his statement regarding the financial results that consumers are being more selective in their spending.
COMPANY WAS NEGATIVELY AFFECTED BY THE BOYCOTT AGAINST INTERNATIONAL COMPANIES SUPPORTING ISRAEL
McDonald's financial results were negatively affected by the boycotts targeting the company due to Israel's attacks on Gaza in the fourth quarter of last year and the first quarter of this year. The company's revenue fell below market expectations in the fourth quarter of last year due to the impact of conflicts in the Middle East on its sales, and sales in the market group including its restaurants in the Middle East also declined in the first quarter of this year.