McDonald's Slides Towards Worst Month Since Pandemic
McDonald's shares are on track for their worst month since March 2020, when the COVID-19 pandemic led to widespread restaurant closures. The company is counting on a September sales rebound in the US, but its CFO Ian Borden warned that even this improvement may not be enough to lift quarterly sales out of negative territory.
McDonald's expects U.S. sales to turn positive in September after slightly negative results in July and August. However, CFO Ian Borden still expects U.S. sales to be 'slightly negative' for the full third quarter. This comes despite the company's efforts to revamp its menu offerings with meal bundles and digital deals.
The company is also testing a new entry-level value offer, which CEO Chris Kempczinski said was particularly important for lower-income customers. McDonald's has made progress on base menu prices and meal bundles but still needs to work on an affordable US entry point.