McDonald’s Announcements 2024 Second Quarter Earnings
McDonald’s has announced its second-quarter 2024 earnings report. According to the company’s statement, McDonald’s global comparable sales decreased by 1 percent in the second quarter of this year. This was the company’s first decline in sales since the last quarter of 2020.
During the period in question, the restaurant chain’s sales in the US fell by 0.7 percent, sales in the “International Operating Markets” segment fell by 1.1 percent, and sales in the “International Advanced Licensed Markets” segment fell by 1.3 percent. The balance sheet statement said, “The ongoing effects of the war in the Middle East and negative comparable sales in China were offset by positive comparable sales in Latin America and Japan.”
Company Revenue and Profitability Lagged Behind Expectations
McDonald’s revenue was nearly flat in the second quarter compared to the same period last year, at $6.49 billion. However, that figure fell short of market expectations of $6.61 billion. The company’s net income also fell 12 percent in the second quarter to $2.02 billion, compared to $2.31 billion in the same period last year.
While earnings per share were $3.15 in the second quarter of last year, this figure fell to $2.80 in the same period in 2024. Earnings per share also fell short of the market expectation of $3.08 in this period. McDonald’s CEO Chris Kempczinski stated in a statement regarding the financial results that consumers are more selective in their spending.
Negatively Affected by Boycotts
McDonald’s, which has been the target of boycotts due to Israel’s attacks on Gaza, has seen its financial results negatively affected by the conflict in the Middle East in the last quarter of last year and the first quarter of this year. The restaurant chain’s revenue fell short of market expectations in the last quarter of last year due to the impact of the conflict in the Middle East. In the first quarter of this year, sales in the market group that includes its restaurants in the Middle East declined.
Starbucks Is Also Losing Blood
Starbucks, the US-based coffee chain, experienced a 3 percent decrease in global sales in the April-June period. Starbucks, which accepts the three-month period ending June 30 as the third quarter according to its financial calendar, announced its balance sheet. According to this data, Starbucks’ global comparable store sales decreased by 3 percent in the period in question. The company’s sales in North America decreased by 2 percent and international sales decreased by 7 percent.
Revenue Falls Below Expectations
Starbucks’ total net income fell 0.6 percent to $9.11 billion in the April-June period, compared with $9.16 billion in the same period last year. Market expectations were for revenue to be $9.24 billion in the period. Starbucks’ earnings per share, which was 99 cents in the April-June period last year, fell to 93 cents in the same period this year. The company’s earnings per share followed market expectations in this period.
Starbucks’ First Global Sales Drop
Starbucks, which has faced protests and boycotts over Israel’s attacks on Gaza, has been hit hard by its financial results in the past two quarters. The company lowered its annual sales forecast in the October-December period of last year, in part because of the negative impact of sales at stores in the Middle East. Revenue fell 2 percent in the January-March period, while global sales fell 4 percent, its first decline since the end of 2020.
