What’s going on here?

McDonald’s sales fell for the first time since the end of 2020, as diners around the world tightened their waistbands along with their purse strings.

What does this mean?

Inflation hasn’t just ruined indulgent takeout orders and celebratory dinners: even the humble Big Mac has been taken out of the budget this year. Despite rolling out new low-cost menu items, McDonald’s has struggled to keep sales steady in major markets around the world. So the fast food company ended up making $6.5 billion in revenue last quarter, shy of the $6.6 expected billion, while profit was down more than 12% from last year. That won’t do anything to reassure investors, who have already taken the shine off the Golden Arches by sending the stock down 15% this year.

Why should I care?

For markets: The savings accounts are spent.

Mind you, it seems that Americans are spending their hard-won money somewhere. Data out on Thursday showed that the stateside economy grew by more than expected last quarter, pushed along by hardy spending from everyday folk. But they’re expected to jump off the hamster wheel for the rest of the year, as they’ve whittled away their pandemic savings. Plus, a measure of consumer sentiment fell to its lowest level in eight months on Friday.

The bigger picture: Land of the rising… spending.

Japan was one of the few countries with an appetite for McDonald’s last quarter. And while that could be because shrimp and teriyaki burgers are harder to pass up than lukewarm nuggets, it’s mainly because the weak yen is attracting tourists from all over the world. The Japanese currency recently hit a 38-year low against the dollar, meaning a shopping trip in Tokyo will cost you less than in Times Square. Case in point: LVMH, Kering, and Burberry’s wares are flying off the shelves in Japan, mainly thanks to luxury-loving vacationers from China.

What’s going on here?

Bernard Arnault, Europe's wealthiest man and the head honcho of luxury empire LVMH, bought a pinky-finger-sized slice of Cartier-owner Richemont.

What does this mean?

Arnault may simply be topping up the family portfolio, but some analysts believe the purchase could be more strategic. After all, French luxury firm LVMH – which owns aspirational jewelry brands like Tiffany & Co and Bulgari – has a history of buying stakes in its rivals. But if the billionaire businessman wants to use Richemont to steal a march in the jewelry market, the plan is anything but foolproof. For one, the purchase would likely face serious scrutiny from monopoly-busting regulators. And for another, Richemont’s chairman has clearly stated that the company will stay independent – and with 51% of the voting rights in tow, what he says goes.

Why should I care?

Zooming out: Forget the Olympics, France’s real competition is underway.

LVMH’s sales were a measly 1% higher last quarter than the same time last year. But it’s all about perspective: that’s a triumph over Gucci-parent Kering’s 11% fall and profit warning, but far behind Hermès’ 13% uptick. Remember, it’s been a trying time for the luxury market, with US and Chinese shoppers watching their wallets – especially now that Americans’ pandemic savings are drying up.

The bigger picture: Going for gold.

Not only is LVMH the “creative partner” for this year’s Olympic Games, but it's also one of the biggest backers with a $166 million sponsorship deal. That’s just over a tenth of the total expected sponsorship for the entire event. At first glance, LVMH’s close ties to the Olympics might seem odd. Luxury brands traditionally stick to sports with a strong scent of old money – think Hermès and horses or Rolex and tennis. That may be part of what industry insiders have called the “democratization of luxury”: nowadays, much of the industry's cash comes from selling to aspirational shoppers who want to look richer than they are.