Research by: Sreeram Kumar Bhagavatula, Bala Toleti, Sandeep Puri, and Vibha Arora
Abstract
McDonald’s 2024 global sales decline highlights the impact of persistent inflation and shifting consumer spending, as price-sensitive customers reduced discretionary dining and sought cheaper alternatives. The case examines how McDonald’s can respond through sharper value propositions, pricing recalibration, and targeted promotions while protecting margins. It also explores differentiation in an increasingly competitive landscape marked by rivals and health-focused entrants, emphasizing brand positioning, menu innovation, and localized offerings. The role of digital ecosystems, including mobile ordering, delivery platforms, and personalized engagement, is assessed as a driver of convenience and sales growth. Ultimately, the case challenges McDonald’s to balance affordability, innovation, and operational efficiency while adapting to evolving consumer preferences and sustaining long-term competitive advantage in the global fast-food industry.
To cite this case:
Bhagavatula, S. K., Toleti, B., Puri, S., & Arora, V. (2026). McDonald’s stumbles: Global sales drop as consumer spending slows. The IUP Journal of Case Folio, 26(1), 45–52. https://iupindia.in/ViewArticleDetails.asp?ArticleID=8644
To access the case: https://iupindia.in/ViewArticleDetails.asp?ArticleID=8644
