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McDonald’s earnings release on Monday was less ba da bing than it was ba-da dun dun dunnn. The ominous notes are another sign that consumers with less cash have even less willingness to spend it after prices on menus and across the economy have climbed in recent years.
The fast-food chain reported worse-than-expected earnings and revenue for Q2, as its same-store sales fell 0.7% in the US for the first time in nearly four years, CNBC reported. Its 1% global YoY drop was even more dramatic in light of the 10.3% jump in same-store sales it reported for the same period last year.
The shine has been a bit duller on the golden arches, both in the US and globally, “pinched by years of price increases and tight household budgets,” Bloomberg reported. Year to date, Mickey D’s shares were down 15% at last week’s close, a mirror image of the S&P 500’s year-to-date growth of 14%.
McPatience. Executives will have to wait “until later this year” to see whether and how much their value meal promotion starting in late June has increased sales, according to Bloomberg, although the company reported that cell-phone tracking and other data showed that more people—including low-income patrons—have been visiting the restaurants since May, when the $5 meal deal was announced.