McDonald’s suffers first slump since Covid – as rocketing prices keep customers away
MCDONALD’S has seen its first slump in sales since the Covid pandemic shut all its restaurants.
The fast food giant said squeezed customers around the world were skipping a trip to the Golden Arches in a bid to save cash.
It comes after the chain hiked the price of burgers, fries, and shakes — which led to meals becoming too pricey for some fans.
The price of a Big Mac has seen a 35 per cent increase since 2020, on average rising from £3.39 four years ago to £4.59 today.
Earlier this year, the chain inadvertently admitted a 40 per cent rise in menu prices over the past five years after trying to quash rumours the cost of burgers doubled in that period.
McDonald’s chief executive Chris Kempczinski told analysts yesterday that “consumers are being more discerning about what, where and when they eat out”.
He said this had been a plus in snapping up customers from more expensive restaurants, but that it had not offset the number of people choosing to stay home instead.
The firm also flagged the conflict in the Middle East as a worry, as pro-Palestine supporters chose to organise a boycott of the brand after an Israeli diner under the brand gave free meals to the military.
Mr Kempczinski said sales in France were particularly weak due to its “higher Muslim population”.
McDonald’s bought back all of its Israeli outlets from the local franchisee in April with a hope of ending the controversy.
The business also pointed to recent initiatives including a “3 for £3” offer in the UK, as well as the £1.99 Happy Meal app promotion as a “compelling offer” that had started to bring back customers.
The brand also recently trialled a $5 value meal in the US in a bid to entice people out to diners.
Summer rain hits Heineken
FOOTBALL fans failed to down enough extra beer during the Euros to offset the June gloom at Heineken.
Shares in the Dutch brewer fell by as much as 8.7 per cent yesterday after it reported the volume of beer it sold rose by 2.1 per cent — falling well short of the 3.4 per cent figure expected by analysts.
Boss Dolf van den Brink said that big sports events usually did have a positive impact, but the poor weather had changed trends significantly.
Volumes in its beer brands in Europe rose by just 0.6 per cent in the first six months of 2024 as wet and chilly weather deterred drinkers.
And Heineken also put its woes down to weak demand in China, and said it would be writing down its majority stake in China Resources Beer.
But a growing trend in buyers cutting back on booze lifted the sale of Heineken’s alcohol-free beer by 14.2 per cent.
Evri's 9k jobs bid
EVRI is ready to create 9,000 extra jobs amid growing demand for online deliveries.
The parcels firm, formerly known as Hermes, made the job pledge just days after private equity giant Apollo bought it for £2.7billion.
Expanding the workforce of couriers — who typically earn £16.50 an hour — will make Evri an even bigger rival to Royal Mail, also in the process of a takeover, by Czech billionaire Daniel Kretinsky.
Shop price joy
THE rate of shop price increases has stalled with inflation edging up by just 0.2 per cent in July, in a boost for consumers.
British Retail Consortium figures showed that food inflation also eased again to 2.3 per cent this month, down from 2.5 per cent in June and the lowest rate since December 2021.
Non-food items such as clothes, shoes, books and furniture are now cheaper than last year.
The BRC said discounting had created deflation at minus 0.9 per cent in July.
Martin's millions
WETHERSPOON boss Sir Tim Martin sold around £10million of shares in his business yesterday.
The pub chain chief, who still owns a 24.58 per cent stake in the firm he founded in 1979, gave no reason for the move.
Share sale off
Chancellor Rachel Reeves has officially scrapped plans for a NatWest share sale to ordinary investors calling it a “bad use of taxpayer money”.
She said it would involve “discounts that could cost taxpayers hundreds of millions of pounds. It would therefore not represent value for money.”
The state still owns a 19.9 per cent stake and Ms Reeves said the Treasury still wants to “fully exit by 2025-2026”.
Natwest can buy back up to 15 per cent of its shares and the rest could be offloaded to institutional investors.