Not even McDonald’s is immune to the effects of rising unemployment in the United States and deep price discounting throughout the quick-service sector.
The chain posted a 1.7-percent uptick in U.S. same-store sales for August, lower than results of the past and below many analyst expectations.
Observers noted that late-night and breakfast sales were hardest hit last month, reflecting the rising level of unemployment in the United States that reduces the need for convenient or quick meals among workers and cuts consumer breakfast traffic during commuting hours. The U.S. unemployment rate hit 9.7 percent in August, the highest level since 1983. Breakfast is a major driver for McDonald’s, accounting for about 25 percent of U.S. sales.
McDonald’s sales slump as even QSR traffic takes unemployment hit
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