McDonald’s profits hit by inflation, Middle East boycotts over Israel-Hamas war
NY Post
McDonald’s earnings fell short of expectations as spiking menu prices have begun to chase away inflation-battered, low-income families.
McDonald’s reported first-quarter net income of $1.93 billion, or $2.66 per share on Tuesday.
Excluding restructuring charges, the Golden Arches earned $2.70 per share. Though it was up from the year-ago period, it missed Wall Street’s $2.72-per-share expectations.
CEO Chris Kempczinski said on McDonald’s earnings call that “it is clear that broad-based consumer pressures persist around the world.”
“Consumers continue[d] to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending,” he added of McDonald’s recent struggle to get inflation-squeezed consumers to cough up as much as $18 for a Big Mac.
Kempczinski emphasized to shareholders Tuesday that the company must be “laser focused” on affordability to win back low-income consumers.
