McDonald’s is reviewing its pricing approach in response to a recent decline in sales that it attributes to consumers cutting back on their purchases. For the first time since the epidemic, stores that have been open for a year or more witnessed a 1% decrease in sales from April to June when compared to the same period last year.
The massive fast-food restaurant saw a decline in sales despite providing discounts to draw in budget-conscious consumers and those abstaining from the business due to the Israel-Gaza war. To address the issue, CEO Chris Kempczinski pledged a “comprehensive rethink” of pricing. The firm is working with franchisees on more “value” initiatives and intends to expand on existing promotions, which include a $5 lunch in the US and a £3 campaign providing three things.
McDonald’s shares increased by more than 3% after the update, as Kempczinski voiced confidence in the company’s capacity to carry out the plan successfully. He underlined that McDonald’s has the size and know-how to implement the required changes.
After the corporation raised prices significantly during the pandemic, customers reacted negatively. The chief of US operations claimed in an open letter last month that social media misrepresented the situation in response to concerns. He pointed out that, in accordance with inflation, the average cost of a Big Mac in the US has increased by 21% since 2019 to $5.29 (£4.11).McDonald’s shares increased by more than 3% after the update, as Kempczinski voiced confidence in the company’s capacity to carry out the plan successfully. He underlined that McDonald’s has the size and know-how to implement the required changes.
After the corporation raised prices significantly during the pandemic, customers reacted negatively. The chief of US operations claimed in an open letter last month that social media misrepresented the situation in response to concerns. He pointed out that, in accordance with inflation, the average cost of a Big Mac in the US has increased by 21% since 2019 to $5.29 (£4.11).
