McDonald's reports unexpected decline in quarterly global sales as spending slows

- McDonald's reported a surprise 1% drop in global comparable sales in Q2, the first decline in 13 quarters, as consumers opt for cheaper meals at home due to inflation and rising food prices.

- Shares of McDonald's, down 15% this year, fell 1.5% in premarket trading following the disappointing sales figures.

- The fast-food industry, including McDonald's and Domino's Pizza, faces muted demand, prompting value meal wars with offers priced between $3 and $5 to attract budget-conscious consumers. Rivals like Burger King, Wendy's, and Starbucks have also intensified meal deals in recent months.

McDonald's experienced a decline in global sales in Q2, marking its first decrease in 13 quarters, as consumers turned to more affordable food options at home due to inflation and rising food prices. The company's shares, which have dropped 15% this year, fell 1.5% in premarket trading. To counter subdued demand, McDonald's and other fast-food chains have launched value meal offers priced between $3 and $5 to appeal to cost-conscious consumers, leading to increased competition in the industry.