McDonald's is reconsidering its pricing strategy, after customers cutting back their spending took a bite out of the fast food giant's sales.
Outlets open for at least a year saw sales fall 1% over the April-June period compared with a year earlier - the first such decline since the pandemic.
The drop came despite the hamburger chain offering money off deals to try to win back cost-conscious customers and those who have boycotted the chain over the Israel-Gaza war.
Boss Chris Kempczinski said the poor results had forced the company into a "comprehensive rethink" of pricing.
He told investors that the firm would lean on discounts to try to stop the sales decline
Executives pointed to recent promotions, such as a $5 meal in the US and a campaign in the UK in which diners can select three items for £3.
Those are expected to be extended in the coming months and the firm said it was working with franchisees on other "value" efforts.
Shares in the company rose more than 3% after the update, as Mr Kempczinski said McDonald's had the scale to make the strategy work.
"We know how to do this. We wrote the playbook on value and we are working with our franchisees to make the necessary adjustments," he said.
McDonald's has been facing a backlash from customers after raising prices significantly during the pandemic.
Last month, the head of its US operations formally responded, external to the complaints with an open letter to customers, saying social media was painting an inaccurate picture.
He said the average price of a Big Mac in the US, which is now $5.29 (£4.11), was up 21% since 2019 - roughly in line with the pace of inflation - and many items had risen by less.