McDonalds Global Sales Decline, Yet Stock Rises on Value Strategy

Last quarter, McDonald`s comparable sales worldwide decreased 1% year over year, falling short of analyst projections. However, the company`s stock rose more than 4% as CEO Chris Kempczinski said its $5 value meal strategy is paying off. The company plans to focus on value for customers as low-income customers grow weary from inflation. The earnings miss was fueled by high prices and an increasingly weary consumer. Low-income customers are particularly shying away from fast food as inflation soars. McDonald`s U.S. President Joe Erlinger said customers will continue to feel the pinch of the economy and higher cost of living for several quarters in this competitive landscape. McDonald`s is working to improve its value execution and has an advantage because it can buy at a lower price than its competitors.