McDonald's is set to reconsider its pricing strategy after sales declined for the first time since the pandemic.
Sales at restaurants open for at least a year fell by 1% between April and June, compared with the same period last year.
The fast food giant is expected to extend it recent promotion in a bid to entice customers back to the chain, such as the recent three items for £3 deal in UK restaurants.
"We know how to do this. We wrote the playbook on value and we are working with our franchisees to make the necessary adjustments," said Chris Kempczinski, CEO of McDonald's.
The company has been criticised for a sharp increase in prices since the pandemic which Mr Kempczinski admitted "led consumers to reconsider buying habits".
The price of a Big Mac has rocketed from £2.99 in 2020 to £4.69 now, while Happy Meal's have risen from £2.99 to £3.59.
McDonald's has also been caught up in a series of boycotts sparked by conflict in the Middle East, similar to those felt by coffee chain Starbucks.
The company brought back hundreds of its franchise restaurants in Israel earlier this year, though has said it has no position on the war.
FTSE 100
The UK's flagship share index, the FTSE 100, was down 74-points, at 8,259, shortly after opening this morning.
Brent crude oil futures were down 0.34%, trading at $78.78 a barrel.
Companies reporting today
A G Barr | Q2 Trading Statement |
Advanced Micro Devices* | Q2 Results |
BP* | Half Year Results |
ConvaTec Group | Half Year Results |
Croda International | Half Year Results |
Diageo* | Full Year Results |
Fresnillo | Half Year Results |
Games Workshop Group | Full Year Results |
Greggs* | Half Year Results |
Glencore | Half Year Production Report |
Inchcape | Half Year Results |
Microsoft* | Q4 Results |
PayPal* | Q2 Results |
Pfizer* | Q2 Results |
Rio Tinto* | Half Year Results |
Sage Group | Q3 Trading Statement |
Spectris | Half Year Results |
Standard Chartered* | Half Year Results |
St James's Place | Half Year Results |
Weir Group | Half Year Results |