• 21/02/2024 11:15

McDonald's records decline in sales for first time in 4 years

McDonald's records a quarterly decline in sales for the first time in 4 years. This was influenced by the war in the Middle East, as well as lower revenues in China and India. According to the company's report, comparative sales in the segment increased by 0.7% in the quarter (expected 5.5%). Reuters writes about this.

McDonald's for the first time in 4 years record decline in sales

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Falling sales due to war

“The burger giant is one of several Western brands hit by a boycott for its supposedly pro-Israel stance in the Middle East conflict,” the publication notes. However, the company believes that this was misinformation.

“The impact of the war on earnings stability will be our biggest concern… it looks like it will be an issue that will remain relevant for the next quarter or perhaps even two,” said Brian Mulberry, a client portfolio owner of Zacks Investment Management, which owns McDonald's shares.

China, India, USA

At the same time, the company received less profit in its second largest market – China. McDonald's Indian franchisees also reported their first revenue decline in three years.

Comparable sales in the United States rose 4.3% in the fourth quarter, slightly less than the 4.4% growth estimate.

However, the company reported adjusted earnings of $2.95 per share, beating expectations of $2.82 per share.

Market reaction

Amid the news, McDonald's shares fell from $298 to $286, generally demonstrating a bearish trend – since the beginning of the year, shares have decreased by 3%.

McDonald's records a drop in sales for the first time in 4 years

Price dynamics for McDonald's shares since the beginning of the year/Source: Google

minfin.com.ua

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