McDonald's Sales Fall Worldwide – Here's Why That's Good For You

Bad news about the economy is about as shocking as hearing that it'll be another hot one in Death Valley today. So it hardly comes as a revelation to hear that burger behemoth McDonald's is experiencing a global sales slump, as reported by Reuters and other outlets. A bit more surprising, however, is the fact that the 1% decrease in sales is the first such downturn since 2021, which was the year the chain instituted numerous post-Covid closures. What's happened to stop the ketchup train from rolling now? Skyrocketing prices over the past few years, that's what. After all, who wants to pay $18 for a Big Mac, fries, and a soda?

It seems we the people have not just been grumbling about the high cost of fast food, but we've let our feet do the walking ... right over to our kitchens, where we prepare more affordable burgers at home. The good news is, McDonald's execs are hearing us. As early as last year, they noticed customers' orders shrinking as prices inflated. While the news may be bad for franchise owners and stockholders, there's a silver lining for customers, since guess what items are doing well? Yep, the bargain-priced ones. Mickey D's $5 meal deal, which consists of either a McDouble or a McChicken plus nuggets, fries, and a soda, has only been around since June, but it's been selling even better than expected. As a result, this limited-time offer may be extended into the fall instead of ending in August as originally slated.

A few more months of that $5 meal deal certainly comes as a boon to anyone looking to fill up at lunchtime and still get change from a $10 bill, but what happens when it's over? With any luck (or common sense, on the part of whoever's in charge of setting McDonald's prices), there will soon be additional value-priced options on the menu. While the chain hasn't made any announcements about future deals to the general public, executives have told stockholders during an earnings call that plans are in place to focus more on discounts than on adding high-end items to the menu (via Seeking Alpha).

One unexpected outcome of McDonald's budget blues is that the value of its stock has been soaring despite the drop in sales. This may seem counter-intuitive, but stock prices tend to be future-focused. While the economic optics at present aren't exactly rose-colored, the $5 meal's success, as well as the chain's promise of future deals to come, seem to indicate to investors that value-priced options may help turn things around in months to come and make McDonald's a desirable destination for penny-pinching consumers.