McDonald's Fails to Achieve Target Sales for the First Time in Four Years

McDonald's announced today, Monday, that it did not achieve its targeted sales for the first time in nearly four years during the last quarter, affected by weak sales growth in its operations in the Middle East, China, and India. Sales of the brand in international licensed developmental markets of McDonald's rose by 0.7% in the last quarter, significantly lower than the expected growth of 5.5%, according to data from the London Stock Exchange Group. Chris Kempczinski, CEO of McDonald's, stated last month that "a number of markets in the Middle East and some others outside the region are experiencing a tangible impact on business due to the conflict between Israel and Hamas, in addition to 'misinformation' about the brand." Global sales of McDonald's stores increased by 3.4% in the fourth quarter, contrary to estimates that forecasted a rise of 4.9%. The quarterly results reflect the slowest sales growth in nearly three years. Despite the decline in sales, the company reported an adjusted profit of $2.95 per share, surpassing estimates of $2.82 per share. The fast food giant is among several Western brands that have faced protests and boycott campaigns due to pro-Israel stances in the conflict with Hamas.