McDonald's (NYSE:MCD) stock fell on Wednesday after the company’s management hinted while speaking at a UBS conference that they expect slightly lower international business sales in Q1 compared to Q4.
MCD stock is down 2.2% today.
The company is still grappling with the ongoing war in the Middle East and has observed a sluggish start in China for the year. Despite challenges, McDonald's remarked that its operations in China are managing okay, although the environment remains tough.
In the U.S., McDonald's noted that the first quarter of 2024 began slowly, attributing this to adverse weather conditions.
The fast-food giant acknowledged soft starts in some of its international markets, including China, France, and the Middle East.
McDonald's is actively working on strategies to improve outcomes in France and expects its Middle East business to recover post-conflict.
The company highlighted a shift in consumer behavior, with lower-income consumers increasingly turning to grocery stores over dining out, after depleting their savings.
This trend poses a challenge to the restaurant sector at large. McDonald's CFO, Ian Borden, shared insights into how the chain is adapting by introducing $4 bundle deals across most U.S. locations.