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2w ago

McDonald’s Reports Steepest U.S. Sales Decline Since Pandemic

Economic uncertainty, geopolitical tensions, and reduced consumer spending have led to a 3.6% drop in U.S. same-store sales in Q1 2025, with global sales also down 1%.

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Illustration: Sarah Grillo/Axios
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Overview

  • McDonald’s U.S. same-store sales fell 3.6% in Q1 2025, marking the chain’s worst performance since the COVID-19 pandemic in 2020.
  • Net income declined to $1.87 billion from $1.93 billion a year ago, partly due to the absence of an extra Leap Day in 2025.
  • CEO Chris Kempczinski cited broadening economic pressures, with spending from both low- and middle-income consumers falling significantly year-over-year.
  • The company introduced value-focused promotions, including a $5 Meal Deal and a Minecraft Movie tie-in, to attract budget-conscious customers, though results have been mixed.
  • Comparable sales declines across the fast-food industry, including Starbucks and Chipotle, highlight a broader trend, while Taco Bell reported a 9% U.S. sales increase due to its value offerings.