{"id":49362,"date":"2025-05-12T09:20:41","date_gmt":"2025-05-12T13:20:41","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=49362"},"modified":"2025-05-12T14:27:27","modified_gmt":"2025-05-12T18:27:27","slug":"mcdonalds-same-store-sales","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/mcdonalds-same-store-sales","title":{"rendered":"Why McDonald’s Same-Store Sales Seriously Tanked"},"content":{"rendered":"\n
\"image<\/figure>\n\n\n\n

I know why McDonald’s same store sales<\/strong> took a hit last quarter.<\/p>\n\n\n\n

But, before I tell you, I figured that it would behoove me to give you the precise definition of same-store sales. <\/p>\n\n\n\n

Same-store sales are a handy way to measure how well a business is doing at its existing locations. They\u2019re shown as a percentage that reflects how much revenue<\/a> has gone up or down. <\/p>\n\n\n\n

For instance, if a chain reports a same-store sales increase of 7%, it means the total dollar revenue at its existing locations stores grew by 7% compared to the same time period last year.<\/p>\n\n\n\n

With that in mind, McDonald’s same-store sales were down last quarter. A lot<\/a>. from CNBC:<\/p>\n\n\n\n

“McDonald\u2019s U.S. same-store sales shrank 3.6% during the first quarter as the chain faced bad weather and a more cautious consumer. That drop is the worst in McDonald\u2019s home market since the 8.7% plunge during the second quarter of 2020<\/em>.”<\/p>\n\n\n\n

Let’s discuss this. <\/p>\n\n\n\n

Why McDonald’s Same-Store Sales Finally Took a Hit<\/h2>\n\n\n\n

Sales at McDonald’s restaurants nose-dived because an order of Large fries costs $4.00 (in<\/em> suburban<\/em> Cleveland<\/em>). The national average is probably closer to $6<\/a>. <\/p>\n\n\n\n

Look, I’ve been bitching about the obscene prices McDonald’s has been charging <\/a>for a couple of years now.<\/p>\n\n\n\n

And while it’s true corporate got aggressive with Value Meals the past few months, it’s obviously not enough. <\/p>\n\n\n\n

As to the price of a large order of McDonald’s fries, how much profit do you think is being made?<\/p>\n\n\n\n

40%? 50%? More?<\/p>\n\n\n\n

Probably more. <\/p>\n\n\n\n

Profit is Not a Dirty Word<\/h2>\n\n\n\n

I’m all for franchisees making a profit. Corporate, too. But this feels like greed. <\/p>\n\n\n\n

Because in a perfect world, it shouldn’t cost a family of four close to $40 to dine at McDonald’s<\/strong>. It’s ridiculous. <\/p>\n\n\n\n

In my opinion, consumers are sick of paying these prices. I know I am. And that’s what has finally hurt same-store sales at McDonald’s franchise restaurants.<\/p>\n\n\n\n

McDonalds Still Owns the Important Freeway Exit Real Estate<\/h2>\n\n\n\n

Up until a couple of weeks ago, I hadn’t given McDonald’s my money for food in almost 6 months. The reason?<\/p>\n\n\n\n

I’m sick of feeling hosed* every time I went there for food. <\/p>\n\n\n\n

*Ripped off.<\/p>\n\n\n\n

As to why I decided to give McDonald’s a try again?<\/p>\n\n\n\n

We recently drove to Florida for a needed vacation.<\/p>\n\n\n\n

And practically every exit had a McDonald’s restaurant. That’s part of a brilliant strategy the late Ray Kroc<\/a> started way back. <\/p>\n\n\n\n

That said, the food was average, the service varied from place to place, but the prices?<\/p>\n\n\n\n

They were the same everywhere.<\/p>\n\n\n\n

Too damn high. <\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

I know why McDonald’s same store sales took a hit last quarter. But, before I tell you, I figured that it would behoove me to give you the precise definition of same-store sales. Same-store sales are a handy way to measure how well a business is doing at its existing locations. They’re shown as a […]<\/p>\n","protected":false},"author":2,"featured_media":49367,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[56],"tags":[2375],"class_list":["post-49362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-op-ed","tag-mcdonalds"],"yoast_head":"\nMcDonald's Same-Store Sales Down — The Franchise King\u00ae<\/title>\n<meta name=\"description\" content=\"The Franchise King, Joel Libava, uncovers what contributed to McDonald's serious same-store sales decline. 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