(NEWSnet/AP) — McDonald’s global same-stores fell for the first time in nearly four years in the second quarter as inflation-weary consumers skipped meals out or chose cheaper options.

The company said it’s working on fixes, like meal deals and new menu items, but it expects same-store sales to be down for the next few quarters.

Sales at locations open at least a year fell 1% in the April-June period, the first decline since the final quarter of 2020 when the pandemic shuttered stores and millions stayed home.

In the U.S., same-store sales fell nearly 1%. McDonald’s saw fewer customers but it said those who came spent more because of price increases.

McDonald’s Chairman, President and CEO Chris Kempczinski defended those increases, saying McDonald’s costs for paper, food and labor have increased as much as 40% in some markets over the last few years.

The company also reported lower store traffic in France and the Middle East, where people have been boycotting McDonald’s because of a perception that it supports Israel in the war in Gaza. Kempczinski said weak consumer sentiment in China has customers fleeing to lower-priced rivals.

McDonald’s warned in April that more of its inflation-weary customers were seeking better value and affordability. The Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, which was late in this financial reporting period.

McDonald’s U.S. President Joe Erlinger said Monday that $5 meal deal sales are running ahead of expectations and are getting lower-income consumers back into McDonald’s stores. Erlinger said 93% of McDonald’s franchisees have agreed to run the promotion through August.

Other countries like Germany and the United Kingdom are also seeing success with meal deals, the company said.

New menu items are also in the works. The company is testing its value-oriented Big Arch double burger in three international markets through the end of this year, Kempczinski said.

For the second quarter, revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting, according to analysts polled by FactSet.

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