McDonald’s has registered a sudden decrease in its global sales during the first quarter on an annual basis today, with the demand from restaurant pioneers stumbled amid financial difficulties in the United States and Europe, due to the state of blurring caused by chaotic customs duties.
The CEO of the largest series of fast food restaurants in the world said that the company faces “the most difficult market conditions”, as customer with low and medium -income customers decreased by restaurants compared to last year.
The results reflect other chains warnings such as Dominos Pizza and Starbucks of the decline in Americans’ spending on eating abroad due to inflation and dark economic expectations that affect consumer confidence.
The customs duties imposed by the administration of President Donald Trump exacerbates pressure on the citizens’ budget and business disorder, and threatening to raise costs and make changes in supply chains.
The American economy faces difficulties, and the latest data showed its contraction for the first time in 3 years in the first quarter, which increases the possibility of recession in 2025.
“The lowest consumers are the most vulnerable to the effect of inflation, and one of the first areas in which they will reduce their spending is eating abroad,” said analyst Sky Canavis of EMARARERS.
McDonald’s shares decreased 2% in early trading after an increase of 10% this year.
Despite the promotion campaigns and offers of meals, global sales fell 1% on an annual basis, unlike analysts’ expectations of 0.95%.
The Wall Street Stock Exchange expected an increase of approximately 2%, according to analysts who were included in the “Pact Set” poll.
In the United States, the largest McDonald’s market, sales fell 3.6%, which is the largest decrease since the pandemic in 2020.
The data showed the decline in demand in the Middle East after popular calls to boycott the Western fast food chains, against the backdrop of accusations of supporting Israel in its war on the Gaza Strip.
