McDonald's has recently reported its most substantial drop in US sales since the peak of the Covid-19 pandemic. This decline, driven by widespread concerns over the US economy, highlights the challenges facing the fast-food giant. Despite launching a marketing collaboration with the Minecraft movie and extending price promotions, the number of visits by US customers to the burger chain has decreased significantly in the first quarter of this year compared to the previous year.
In light of these challenges, Chief Executive Officer Chris Kempczinski acknowledged that customers are navigating a period of uncertainty. He reassured investors that McDonald's possesses the resilience to withstand even the most challenging market conditions. The company's ongoing efforts to rekindle customer enthusiasm come after facing criticism over rising prices, particularly from lower-income households.
The figures released show that revenue at US McDonald's locations that have been open for at least a year fell by 3.6% in the first three months of 2025, marking the steepest decline in like-for-like sales since June 2020, when pandemic restrictions were in effect. This unexpected drop coincided with a contraction in the US economy, which shrank at an annual rate of 0.3% during the same period—marking the first quarterly decline in economic output since 2022.
In response to the economic data, former President Donald Trump urged patience, attributing the disappointing numbers to the current administration's economic policies. Meanwhile, Danni Hewson, head of financial analysis at AJ Bell, emphasized that Americans are increasingly apprehensive and reducing their discretionary spending due to fears of rising prices. She noted that household budgets are already strained due to previous inflation and that consumers are anxious about potential job losses if the economic slowdown persists.
The reported figures from McDonald's reflect the first two months of Donald Trump's presidency, concluding just before his significant tariff announcements on April 2, which many businesses and consumers found confusing. In light of these developments, Kempczinski stated, "Consumers today are grappling with uncertainty, but they can always count on McDonald's for exceptional value." He highlighted the company's 70-year legacy of innovation and proven adaptability, expressing confidence in their ability to navigate through tough market conditions and capture additional market share.
During the same three-month period leading up to March, the downturn in McDonald's US sales also led to a 1% decline in its global like-for-like revenue, despite witnessing sales growth in regions such as Japan, Australia, and the Middle East. The challenges faced by McDonald’s in the US market underscore the broader economic uncertainties affecting consumer behavior and spending habits worldwide.
