McDonald's US Sales Slowdown Blamed on Overwhelming Promotions
McDonald's Corp. struggled to attract customers in the US during its second quarter, falling short of expectations. The company cited too many limited-time promotions and menu confusion as contributing factors. McDonald's said it had a positive check growth and favorable product mix, but these were offset by negative guest counts.
The company's comparable sales in the US were 0.8% during the second quarter, compared to 2.5% during the same period last year. McDonald's CEO Christopher Kempczinski attributed the slowdown to a lack of execution, stating that employees were overwhelmed by too many promotions and menu changes.
Kempczinski explained that restaurant managers were tasked with executing multiple initiatives simultaneously, including the launch of KPop Demon Hunters, a change to the McValue program, and a new beverage platform. This resulted in customer service times increasing and satisfaction scores decreasing.
McDonald's has adjusted its forecast for total restaurants open globally, originally targeting 50,000 stores by the end of 2027 but now expecting to reach this number in 2028 due to inflationary pressures.