Isn’t it normal for the market to experience negative growth? Food safety problems have not existed before. It is simply impossible to have zero problems 365 days a year. Most food companies cannot achieve no quality problems or food safety problems throughout the year. There are complaints, there are no complaints, and there are complaints that are resolved directly in the store. There are far more problems than what we see, so this is not the reason for the decline in net profit and the negative growth in the Chinese market. Let’s not talk about the decline in net profit, just talk about negative growth in China. Previously, there were major virus outbreaks in many places in mainland China. Some areas were suspended for nearly two months. Moreover, the overall employment environment in the first half of the year was not good. To put it simply: stay at home. There is no way to buy it, no salary, no money to buy it. On the other hand, there are more and more brands of fried chicken burgers, and even small street shops can make them. There are too many alternatives to McDonald's and KFC, so if you want to eat at this time, you may choose cheaper ones.

Isn’t it normal for the market to experience negative growth? Food safety problems have not existed before. It is simply impossible to have zero problems 365 days a year. Most food companies cannot achieve no quality problems or food safety problems throughout the year. There are complaints, there are no complaints, and there are complaints that are resolved directly in the store. There are far more problems than what we see, so this is not the reason for the decline in net profit and the negative growth in the Chinese market. Let’s not talk about the decline in net profit, just talk about the negative growth in China. Previously, there were many virus outbreaks in mainland China, and some areas were suspended for nearly two months. Moreover, the overall employment environment in the first half of the year was not good. To put it simply: there is no need to stay at home. You can't buy it without a salary, and you don't have the money to buy it. On the other hand, there are more and more brands of fried chicken burgers, and even small street shops can make them. There are too many alternatives to McDonald's and KFC, so if you want to eat at this time, you may choose cheaper ones.

Because of poverty. I really can’t afford McDonald’s. KFC can only afford the hot and spicy bone chicken on Crazy Thursday, but this event is so stupid. I only bought the hot and spicy bone chicken once in more than a month, 5.6 weeks. I usually order fried chicken or similar fried chicken, and the coupons are around 14-17 when I use up the coupons. Sorry, I can't afford Wallace either. Wallace still has 25-27 after using up his coupons. So now I just buy more vegetables. Meituan Preferred buys semi-finished chicken, and then uses the air fryer, which costs about 10 yuan, but it is a bit small. Following KFC's Yum Brands, "foreign fast food" McDonald's also released its second quarter quarterly report this year. Results showed that the company's net profit for the quarter fell 4.5% year-on-year, lower than market expectations. Earlier, Yum! reported a decline in operating profits in the Chinese market. However, both giants have maintained or even raised their goals for opening stores in China this year.

McDonald’s announced the night before that its global comparable revenue increased by 3.7%. However, due to the slowdown in the global economy and the strong US dollar exchange rate, net profit for the quarter fell 4.5% year-on-year to US$1.35 billion, with earnings per share of 1.32 USD, below market expectations of $1.37. Operating income during the period rose slightly year-on-year to US$6.92 billion, which was also slightly lower than market expectations. In the Asia-Pacific, Middle East and Africa region, McDonald's comparable revenue increased by 0.9%, with value-for-money meals driving growth from the Chinese and Australian markets, but the Japanese market performed weakly. In an analyst meeting, McDonald's executives pointed out that the goal of opening 225 to 250 new stores in China this year is still being implemented. Previously, Yum!'s second quarter report showed that operating profits in the Chinese market fell by 4%, and profit margins fell by 4.1% to 15.6%. Yum explained that it was mainly affected by a 13% increase in employee salaries and a 6% increase in commodity prices during the period. However, Yum! said it will increase the number of stores it will open in China this year from 600 to 700.

A video posted online showed that in the kitchen of a McDonald's restaurant, an employee picked up bread that had fallen on the floor and put it on the shelf again. The video shooter said that there were many staff in the kitchen at the time, but they were all busy with their own business, and no one stopped the employee's behavior. After the incident, the Guangzhou Municipal Market Supervision Bureau opened an investigation into the restaurant involved. As for the employees of the restaurant involved who had irregular processing operations, law enforcement officers provided standardized education on site and ordered rectifications. They also conducted corporate responsibility interviews and comprehensive supervision and inspection. To this end, McDonald's China's official Weibo responded that the behavior of individual employees did not comply with McDonald's operating standards. After receiving the feedback, the restaurant immediately checked the monitoring, required the restaurant involved to stop external services, and suspended the employees involved from work. It also stated that all employees will be trained and calibrated again to enhance food safety awareness.

Not only that, there are endless complaints about McDonald’s food safety issues on Weibo, Black Cat Complaints and other platforms. Some consumers reported to the Black Cat Complaint Platform that they ate a piece of paper with blue ink writing on McDonald’s grilled chicken drumsticks. In addition, some consumers said they ate fried flies, Bugs, egg shells and other foreign objects In fact, McDonald’s food safety issues are nothing new. There have been incidents before, such as "meat bugs in orange juice", "hamburgers don't go bad for a year because they contain too many preservatives", "ice cubes" dirty the toilet water, "use of ingredients that turned black overnight", "trays left without wiping them down" Incidents such as using "" are appalling, and they run counter to the healthy, youthful and fashionable images presented in McDonald's advertisements.

McDonald's said in its financial report that the decline in net profit margin, the closure of restaurants in the Russian and Ukrainian markets, and the inflationary pressure on labor and goods had a certain negative impact on the quarter and the company's operating profit margin. McDonald's divides its business into three parts: the U.S. market, the international market and the international franchise market. Judging from the quarterly revenue breakdown data, among McDonald's three major business segments, the North American and international development licensing markets have achieved positive growth, with year-on-year growth rates of 6% and 8% respectively. Among them, the international development licensing market has a year-on-year growth rate of dropped. The influence of Russia and Ukraine has also caused the international market to be the only one among the three major divisions to experience negative growth, at -11%. This is also the main reason for the negative growth of the company's total revenue.

As for the company's total net profit margin, which fell by 17 percentage points year-on-year, it was still due to the closure of Russian stores, which resulted in related expenses of up to 1.2 billion US dollars. In North America, revenue and gross profit growth remained at the same level as the same period last year. However, it is worth noting that at this time, the European market is in an environment where high inflation has driven a sharp rise in raw material prices.

McDonald’s CEO believes that the world’s situation is changing rapidly and becoming unpredictable, and so does McDonald’s. The inflation rate in the United States has reached the highest level in 40 years. In the past six months, macroeconomic uncertainty has increased, and today we are still facing war in Europe. McDonald's expects that the overall price increase of its products will be at a high level. Even with the price increase, customer traffic will still be strong, at about 70% of historical levels.