McDonald’s (MCD) has reported mixed first-quarter financial results as consumers pullback on discretionary spending and boycotts hurt sales in the Middle East.
The Chicago-based restaurant chain reported earnings per share of $2.70 U.S. versus $2.72 U.S. that was expected among analysts.
Revenue in the quarter amounted to $6.17 billion U.S. compared to $6.16 billion U.S. that was forecast on Wall Street.
Overall sales at McDonald’s increased 5% while global same-store sales rose 1.9% during the quarter, missing estimates of 2.1%.
While the company said that overall spending grew due to higher menu prices, it acknowledged that the higher prices have kept some low-income customers away.
McDonald’s also noted that its restaurants in the Middle East have been hurt by the Israel-Hamas war and related boycotts in that region of the world.
Earlier in April, McDonald’s corporate parent bought the 225 restaurants operated by its Israeli franchisee.
The stock of McDonald’s has declined 8% over the past 12 months to trade at $273.55 U.S. per share.
