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Source/ Jianghan Vision

In the global capital market, consumer stocks have attracted much attention from the market, and are even considered by investors to be one of the few industries that can survive cycles. However, recently, news of a collective collapse of consumer stocks has come out. What is going on? Why are Starbucks and McDonald's failing?

1. Consumer stock giants collectively collapsed?

According to Blue Whale Finance, in a tight consumption environment, signs of weak consumer demand are evident, which is directly reflected in the performance of consumer brands. From catering leaders such as Starbucks and McDonald's, to food companies such as Nestlé, to fashion giants such as Uniqlo and LVMH, to beauty giants such as Procter & Gamble and L'Oreal, the performance trend is obviously weak and generally falls short of expectations.

McDonald's disclosed its second quarter 2024 financial report, with both profits and revenues falling short of analysts' expectations. Specifically, in the second quarter, all McDonald's divisions saw negative sales growth, compared with double-digit growth in the same period last year. Among them, the company's same-store sales in international development license markets, including China, fell 1.3% year-on-year, mainly due to the continued impact of the Middle East war and the decline in same-store sales in the Chinese market, which offset the increase in the Latin American and Japanese markets.