McDonald's sales fall to lowest levels since Covid lockdowns, despite the chain's new value menu

Core Insights - McDonald's is experiencing a decline in customer visits, with US same-store sales dropping by 3.6% in the second quarter, marking the largest decline since the COVID lockdowns [1][2] - The decline in visits is attributed to both low-income and middle-income consumers reducing their spending, as they become more cautious about dining out [2][3] - Despite introducing a new value menu and maintaining a $5 value meal, customer engagement has not improved, particularly in breakfast offerings [3][4] Group 1 - McDonald's has seen a significant decrease in customer visits, with a 3.6% decline in same-store sales during the second quarter [1] - The decline is primarily driven by a shift in consumer behavior, with both low-income and middle-income diners cutting back on spending [2] - The introduction of value menus has not successfully attracted customers back to the chain, indicating a broader trend of reduced spending in the restaurant industry [3][4] Group 2 - The pullback in customer visits is not limited to the US, as similar trends are observed in major markets globally [4][5] - McDonald's executives noted that the company's performance has not been significantly impacted by geopolitical factors or anti-American sentiment [5][6] - The overall industry environment remains challenging, with softening consumer sentiment affecting dining habits [5]