NEW YORK — McDonald’s reported a bigger-than-expected decline in US comparable sales as financially stretched consumers reduced dining out, extending a slowdown that has challenged the company’s efforts to attract lower-income customers through value meals.
Comparable sales in the United States, McDonald’s largest market, fell 0.2% in the quarter ended Sept 30, missing analysts’ expectations for a 0.1% decline, according to LSEG data. It was the chain’s first quarterly US sales decline after five quarters of growth.
Customer traffic remained weak, with visits to McDonald’s restaurants down 4.6% year on year in the third quarter, according to Placer.ai. Traffic was still below year-earlier levels in October, despite the return of the Monopoly promotion and Halloween-themed Boo Buckets.
McDonald’s has introduced offers including an under-$3 menu and a $4 breakfast meal over the past two years as higher living costs push consumers toward cheaper rivals, convenience stores and home-cooked food. Chief Executive Chris Kempczinski said the company was encouraged by improvement later in the quarter following its value-focused interventions.
Globally, comparable sales rose 1.5%, in line with expectations. Adjusted earnings increased to $3.57 per share from $3.22 a year earlier, helped by an approximately 4% drop in operating costs and expenses. Rival Burger King’s parent, Restaurant Brands International, beat sales expectations last week, while Yum Brands said Taco Bell’s sales had returned to growth.