McDonald's fell short of Wall Street estimates for first-quarter sales today as budget-conscious consumers cut back on restaurant meals and the Middle East conflict weighed on the burger chain's international sales.
Global comparable sales growth slid for the fourth quarter in a row to 1.9%, with the company saying consumers turned "more discriminating with every dollar they spend".
Analysts had estimated a 2.35% rise, according to LSEG data.
The company has raised prices by roughly mid to high-single-digit percentage over the last year in response to a rise in costs of eggs and other raw items.
Comparable sales in the company's International Developmental Licensed Markets segment, which made up 10% of its overall revenue in 2023, declined 0.2%, offsetting positive trends from Japan, Latin America and Europe.
Analysts had expected a 0.98% rise for the unit.
Earlier in March, McDonald's CFO Ian Borden had warned of a sequential fall in international sales in the first quarter, pressured by the conflict in the Middle East and a sluggish Chinese economy, its second-largest market after the US.
Higher competition for breakfast hour spending in the US has prompted the burger giant to lean on low-priced menu choices including breakfast value bundles and a Dollar Menu under the $4 price point.
First-quarter same-store sales grew 2.5% in the US, sharply lower than a 12.6% growth last year and slightly below estimates of a 2.55% growth, signaling that cash-strapped Americans remained picky about offers at fast-food chains amid still-high inflation.
McDonald's posted quarterly adjusted per-share profit of $2.70. Analysts had estimated $2.72, according to LSEG data. Total operating costs and expenses increased 2% to $3.43 billion.
