Overview

• McDonald’s U.S. same-store sales fell 3.6% in Q1 2025, marking the worst decline since the early pandemic in 2020.
• CEO Chris Kempczinski attributed the decline to inflation, geopolitical tensions, and consumer uncertainty, which have particularly impacted low- and middle-income customers.
• Traffic from low-income diners dropped nearly 10%, with middle-income visits falling by nearly the same amount, reflecting broader economic strain.
• The company is extending its $5 Meal Deal and introducing new menu items, such as McCrispy Strips and Snack Wraps, to attract budget-conscious consumers.
• Other fast-food chains, including Chipotle, Domino’s, and Starbucks, also reported declining sales, while Taco Bell has gained traction with value-focused promotions.