CHICAGO — Consumers looking for value and lower prices pushed down US and global sales at McDonald’s Corp. during the second quarter ended June 30, resulting in 0.7% and 1.1% decreases, respectively, for McDonald’s Corp. That compares to a 10% increase in US sales and a 12% increase in international sales during the year-ago timeframe.

The Chicago-based fast-food company posted net income of $2.02 billion for the second quarter, equal to $2.80 per share on the common stock, which was down 12% from $2.31 billion, or $3.15 per share, from the same period in 2023.

Revenues of $6.49 billion were flat during the second quarter, and systemwide sales slid 1%, McDonald’s said.

Besides the drop in traffic fueled by higher prices, the company cited an overall slowdown in the quick-service restaurant sector in many of its markets, a lagging economic recovery in China, weakness in France and the war in the Middle East as factors behind the second-quarter slump.

However, McDonald’s stock rose by more than 4% following the earnings release as the company emphasized its already successful “$5 Meal Deal” approach launched in late June to bring back budget-conscious customers increasingly focused on affordability. The prices of some of the company’s most popular menu items, such as the Big Mac and the Quarter Pounder, have gone up by at least 20% in the past few years.

“Beginning last year, we warned of a more discriminating consumer, particularly among lower-income households,” said Chris Kempczinski, chief executive officer, on a July 29 earnings call. “And as this year progressed, those pressures have deepened and broadened.”

He said the company’s growth and innovation strategy, known as “Accelerating the Arches,” continues to be the correct playbook, and that value execution remains its strong suit.

“Continued focus on gold standard execution and our growth pillars are the right actions to grow market share and return to restaurant traffic growth to share more on the US segment,” Kempczinski said.

He noted McDonald’s enjoys an underlying competitive advantage by being able to buy food and other products at lower prices than other fast-food companies.

In addition, he said the company does well at delivering “intangibles” that influence how consumers define value. An example is how clean the restaurant is, which he said can represent 25% to 30% of a customer’s value perception.

“So, it's not just about hitting low price points,” Kempczinski said. “It’s also the overall experience you can deliver.”

For the first half of 2024, McDonald’s posted total revenues of $12.66 billion, a 2% increase from $12.39 billion in the same period in 2023. Net income for the first half of 2024 came in at $3.95 billion, equal to $5.46 per share on the common stock, which was a 4% decline compared with $4.11 billion, or $5.60 per share, in the first half of 2023.