Fast food giant McDonald's reported its first fall in sales since the Covid pandemic, falling short of growth estimates and reminding everyone that there's really no need to pay exorbitant prices for some of the worst food made available to mankind. The $5 meal deal saved its bacon in the U.S.
CEO Chris Kempczinski said there is a lot more deal-thinking from consumers who have become "very discriminating". "Consumer sentiment in most of our major markets remains low," he said. … "The biggest hit for McDonald's is the low-income consumer has really cut back on visits and that is more than offsetting the typical trade down McD normally sees in tougher economic times," said Edward Jones analyst Brian Yarbrough.
What Reuters' story doesn't include is the context of McDonald's profits: about $14bn in the last year. The margins on fast food are wild and at its highest inflation was barely a haircut—and the industry was more than happy to pass the cost of it to the consumer, and more.
