Global sales at the Golden Arches dipped last quarter for the first time since the end of 2020 due to a growing pullback among inflation-weary nugget-eaters, McDonald’s reported yesterday.

According to McD’s Q2 earnings:

• Less foot traffic and more cost-conscious ordering (e.g., opting for a cheaper sandwich or nixing a side of fries) meant overall same-store sales fell 1% year over year in the April–June period, missing Wall Street expectations.

• International sales declined even more amid McDonald’s boycotts in Southeast Asia and the Middle East, and against tough competition in France and China.

• Net profit sank 12% from a year ago, to ~$2 billion.

Investors don’t appear spooked—McDonald’s stock rose nearly 4% yesterday (though it’s down 12% YTD), and the company largely maintained its full-year guidance.

The value meal isn’t what it used to be. The average Big Mac Meal costs $9.29 in the US—27% more than it did in 2019, according to McDonald’s. After several years of rising inflation, the slowdown that started last year with lower-income customers has now spread, CEO Chris Kempczinski said, but the chain’s new $5 meal deal is reportedly luring some business back. —ML

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