• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

(CNBC) McDonald’s reports largest U.S. same-store sales decline since 2020

Chomsky

Chomsky

Social Democrat
DP Veteran
Joined
Apr 28, 2015
Messages
103,150
Reaction score
93,421
Location
Third Coast
Gender
Male
Political Leaning
Liberal
(CNBC) McDonald’s reports largest U.S. same-store sales decline since 2020
--
“In the U.S., overall [quick-service restaurant] industry traffic from the low-income consumer cohort was down nearly double digits versus the prior year quarter,” CEO Chris Kempczinski said on the company’s conference call. “Unlike a few months ago, QSR traffic from middle-income consumers fell nearly as much, a clear indication that the economic pressure on traffic has broadened.”
Click to expand...
Compared with its industry peers, McDonald’s has more low- and middle-income diners, executives said. And even though high-income consumers are still dining out, their spending is not enough to offset the shrinking traffic from other income cohorts.
Click to expand...
--

Another negative economic report, with data rivaling that of the Pandemic levels.

It appears same-store McDonalds' sales declined among lower-income customers earlier in the quarter, expanding to middle-income customers declining later in the quarter, indicating the economic slowdown is broadening.

From the article it seems McDonalds is an economic canary of sorts for America's lower & mid-income demographics.

Unfortunately, these are the demographics that are also expected to be hit the hardest with Trump's tariffs.

Given that the higher-income demographic purchases actually increased (but not enough to offset the mid & lower losses), I might argue higher-income consumers may also shifting their spending patterns - going from more expensive dining options to McDonalds.
 
McDonald's has gone from bad to terrible in product and service. The restaurants in our area haven't been busy for the past year.
 
Chomsky said:
(CNBC) McDonald’s reports largest U.S. same-store sales decline since 2020
--


--

Another negative economic report, with data rivaling that of the Pandemic levels.

It appears same-store McDonalds' sales declined among lower-income customers earlier in the quarter, expanding to middle-income customers declining later in the quarter, indicating the economic slowdown is broadening.

From the article it seems McDonalds is an economic canary of sorts for America's lower & mid-income demographics.

Unfortunately, these are the demographics that are also expected to be hit the hardest with Trump's tariffs.

Given that the higher-income demographic purchases actually increased (but not enough to offset the mid & lower losses), I might argue higher-income consumers may also shifting their spending patterns - going from more expensive dining options to McDonalds.
Click to expand...
The ones near me are always packed but they have really good, hands on operators.
 
Meanwhile at Culver's
2019: AUV: $2.435 million, Systemwide sales: $1.73 billion.
2020: AUV: $2.624 million, Systemwide sales: $1.986 billion.
2021: AUV: $3.099 million, Systemwide sales: $2.489 billion.
2022: AUV: $3.28 million, Systemwide sales: $2.830 billion.
2023: Operating revenue: $263.8 million, up 18% year-over-year.
2024: AUV: $3.79 million.
 
SNOWFLAKE said:
Let me guess, Joe Biden's fault? 🤣
Click to expand...

Where have I blame Joe Biden for anything? I guess I did point out one time that he's one of the greatest trickle down supply side presidents the US has ever had.
 
McDonald's prices has gone up. They're on the front line for minimum wage price increases. That and kicking out all the illegals shrunk their customer base.
 
L88 said:
Meanwhile at Culver's
2019: AUV: $2.435 million, Systemwide sales: $1.73 billion.
2020: AUV: $2.624 million, Systemwide sales: $1.986 billion.
2021: AUV: $3.099 million, Systemwide sales: $2.489 billion.
2022: AUV: $3.28 million, Systemwide sales: $2.830 billion.
2023: Operating revenue: $263.8 million, up 18% year-over-year.
2024: AUV: $3.79 million.
Click to expand...
That's the thing, I get multiple messages from McDonalds decrease in sales.

Unemployment numbers rising, consumer confidence down, and negative GDP news seems like there's a strong case for consumers pulling back.

At the same time, McDonalds seems like they had jacked up prices as high as they thought they could. The value is non-existent. They aren't fast anymore. They rarely have enough people working there. The food is what it's always been, which is okay I guess for something quick when you're busy.

So, could be a mixture of both driving those lower revenues.

Culver is a superior product, superior service, and about the same cost.
 
L88 said:
McDonald's has gone from bad to terrible in product and service. The restaurants in our area haven't been busy for the past year.
Click to expand...

While Mickey D's has been a traditional bellwether, we'll have to see if the rest of the industry is following suit.
 
Last edited:
Chomsky said:
(CNBC) McDonald’s reports largest U.S. same-store sales decline since 2020
--


--

Another negative economic report, with data rivaling that of the Pandemic levels.

It appears same-store McDonalds' sales declined among lower-income customers earlier in the quarter, expanding to middle-income customers declining later in the quarter, indicating the economic slowdown is broadening.

From the article it seems McDonalds is an economic canary of sorts for America's lower & mid-income demographics.

Unfortunately, these are the demographics that are also expected to be hit the hardest with Trump's tariffs.

Given that the higher-income demographic purchases actually increased (but not enough to offset the mid & lower losses), I might argue higher-income consumers may also shifting their spending patterns - going from more expensive dining options to McDonalds.
Click to expand...
McDonald's has forgotten who they are and their prices have gotten out of hand.
 
Chomsky said:
(CNBC) McDonald’s reports largest U.S. same-store sales decline since 2020
--


--

Another negative economic report, with data rivaling that of the Pandemic levels.

It appears same-store McDonalds' sales declined among lower-income customers earlier in the quarter, expanding to middle-income customers declining later in the quarter, indicating the economic slowdown is broadening.

From the article it seems McDonalds is an economic canary of sorts for America's lower & mid-income demographics.

Unfortunately, these are the demographics that are also expected to be hit the hardest with Trump's tariffs.

Given that the higher-income demographic purchases actually increased (but not enough to offset the mid & lower losses), I might argue higher-income consumers may also shifting their spending patterns - going from more expensive dining options to McDonalds.
Click to expand...
McDonald's is way too expensive for what you get now. Might as well go to a better option for the price.
 
Chomsky said:
(CNBC) McDonald’s reports largest U.S. same-store sales decline since 2020
--


--

Another negative economic report, with data rivaling that of the Pandemic levels.

It appears same-store McDonalds' sales declined among lower-income customers earlier in the quarter, expanding to middle-income customers declining later in the quarter, indicating the economic slowdown is broadening.

From the article it seems McDonalds is an economic canary of sorts for America's lower & mid-income demographics.

Unfortunately, these are the demographics that are also expected to be hit the hardest with Trump's tariffs.

Given that the higher-income demographic purchases actually increased (but not enough to offset the mid & lower losses), I might argue higher-income consumers may also shifting their spending patterns - going from more expensive dining options to McDonalds.
Click to expand...
Oh well.
 
L88 said:
Meanwhile at Culver's
2019: AUV: $2.435 million, Systemwide sales: $1.73 billion.
2020: AUV: $2.624 million, Systemwide sales: $1.986 billion.
2021: AUV: $3.099 million, Systemwide sales: $2.489 billion.
2022: AUV: $3.28 million, Systemwide sales: $2.830 billion.
2023: Operating revenue: $263.8 million, up 18% year-over-year.
2024: AUV: $3.79 million.
Click to expand...

That's a broad sweep, though.

To do an apt comparison, we need data broken-out by Q4 '24 & Q1 '25.

(BTW - I like Culvers)
 
You must log in or register to reply here.
Back
Top Bottom