(Reuters) — McDonald’s worldwide gross sales will fall sequentially within the present quarter, pressured by the battle within the Center East and demand weak point in China, CFO Ian Borden mentioned on Wednesday, sending its shares down 2% in early commerce.
First-quarter comparable gross sales in McDonald’s Worldwide Developmental Licensed Markets section will probably be “barely decrease” than the prior three-month interval, Borden mentioned on the UBS World Client and Retail Convention.
The corporate in February extensively missed Wall Avenue estimates for fourth-quarter gross sales within the section, partly because of protests and boycott campaigns towards a number of Western manufacturers over their perceived pro-Israeli stance within the Israel-Hamas battle.
“We proceed to take care of the impacts of the struggle within the Center East. However we’re additionally seeing what I might name a sluggish begin in China this yr,” Borden mentioned.
World companies comparable to McDonald’s are additionally grappling with weak demand in China as employment points, a deepening property disaster and financial uncertainties put a damper on client sentiment.
(Reporting by Deborah Sophia in Bengaluru; Modifying by Devika Syamnath)
