Speedy restaurant collective - McDonald's continues to be impacted by the ongoing Mideast conflict.
Fast food giant McDonald's is experiencing the consequences of the Middle East conflict in the first quarter. According to an announcement made in Chicago, sales increased by only 1.9% compared to the previous year, disappointing analysts who had anticipated stronger growth. The strife in the Middle East had already hindered the company in the previous quarter.
Approximately 10% of McDonald's revenue comes from the Middle East, and the restaurants in Muslim countries are currently facing boycotts as a result of the conflict. Despite a slightly improved performance in Europe, Latin America, and Japan, the negative impact of the Middle East on the business couldn't be countered.
In addition to international struggles, McDonald's is also facing challenges in its home market. In the US, sales grew by 2.5% on a comparable basis, meeting analysts' predictions, but still lagging behind the 12.6% increase in the same period last year. The chain increased the prices of its burger menus, which caused hesitation among lower-income customers.
Despite some setbacks, McDonald's recorded $6.17 billion (€5.75 billion) in sales during the quarter, representing a 5% increase. The operating result rose by 8% to $2.74 billion. Earnings per share reached $2.66, up from $2.45 the year prior, though falling slightly short of expectations.
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Source: www.stern.de
