McDonald’s Chief Financial Officer (CFO), Ian Borden, has stated that overseas sales are expected to decline further due to challenges in the Middle East and China. Borden made these remarks at the UBS Global Consumer and Retail Conference. He mentioned that first-quarter comparable sales in McDonald’s International Developmental Licenced Markets segment are projected to be slightly lower than the previous three-month period.
The ongoing conflict in the Middle East and weakening demand in China have contributed to the anticipated decline in international sales for the current quarter. Borden highlighted that McDonald’s faced challenges in meeting Wall Street estimates for fourth-quarter sales, partly attributed to protests and boycott campaigns against Western brands perceived to have a pro-Israeli stance during the Israel-Hamas conflict.
Borden emphasized the impact of the Middle East conflict and noted a sluggish start in China for the year. He highlighted broader challenges faced by global businesses like McDonald’s, including weak demand in China due to employment issues, a deepening property crisis, and economic uncertainties affecting consumer sentiment.