McDonald’s CEO: “The American Economy is divided” where wealthy customers continue at a time when ordinary families arrive – Amazon.com (Nasdaq: Amzn), MCDONALD’s (NYSE: MCD)
McDonald’s company Associate It starts in 2025 with a warning of a growing few consumers in the United States, with a sign of clear division along the income lines.
What happened: During the first quarter profit call, CEO of McDonald’s, CEO, Chris Kimbinski The opening notes on low traffic in the rapidly service restaurant industry, especially from the low -income and medium -income consumer regiment, both decreased by approximately 10 % compared to the previous quarter.
However, the traffic between high -income consumers is still strong, which Kempczinski said, “The American economy explains, where consumers with low and medium income consumers are installed in particular,” by factors such as inflation and dark economic expectations.
During the questions and answers session, the financial manager Ian Borden He pointed out that the base of McDonald’s customers is heading towards consumers with low and medium income, which causes the company to adhere to its commitment to “strong value” and “the ability to withstand costs” through the list offers.
Borden adds that this -focused strategy helped McDonald’s to outperform its closest competitors on the same charges of the store’s guests during the first quarter.
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Why do it matter: The company has witnessed a 3.6 % decrease on an annual basis in store sales themselves during a quarter, which represents a sharp decline since 2020, during the Covid-19 pandemic. As a result, McDonald’s estimates that lost consensus, with $ 2.67 per share profits, from $ 5.96 billion of revenues.
This coincides with the collapse of the morale of consumers The lowest level in three years In April, at 50.4, a decrease from 57 in March, with customs tariffs, inflation expectations, and market reactions that swim.
Amazon.com Inc. amzn CEO Andy Jaci Express similar concerns While calling the company’s profits in the first quarter on Thursday, referring to the transformations in the consumer behavior that reminds us of the epidemic. “Maybe there was no more important time in modern memory than now in an attempt to maintain low prices,” he said.
Price work: The stock decreased by 1.88 % on Thursday, and currently decreased by 0.20 % hours after the company’s profits.
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