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McDonald’s Faces Steepest U.S. Sales Decline Since 2020 as Economic Strains Deepen

First-quarter results show a 3.6% drop in U.S. same-store sales and a 1% global dip, with low- and middle-income consumers cutting back sharply.

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Illustration: Sarah Grillo/Axios

Overview

  • McDonald’s U.S. same-store sales fell 3.6% in Q1 2025, marking the largest decline since the pandemic in 2020.
  • Global sales dropped by 1%, with net income slipping to $1.87 billion compared to $1.93 billion a year earlier.
  • CEO Chris Kempczinski attributed the decline to economic uncertainty, inflation, and geopolitical tensions impacting consumer sentiment.
  • Traffic from both low- and middle-income consumers fell nearly 10%, highlighting the broadening economic pressure on spending habits.
  • To counteract declining traffic, McDonald’s is focusing on $5 value meal deals and plans to introduce new menu items like chicken strips and the return of the Snack Wrap later this year.