McDonald’s US same-store sales dropped 3.6% in the first quarter, the worst decline since 2020 when COVID-19 lockdowns imposed a plunge of 8.7%. The chain narrowly beat earnings per share expectations but fell short on revenue.
Analysts predicted domestic sales would drop only 1.7%, and CEO Chris Kempczinski attributed the decline to low-income consumers cutting back on QSR traffic by nearly double digits. Middle-income diners also saw a significant decrease, indicating broader economic pressure.
Across all markets, same-store sales fell 1% due to comparisons with last year’s leap day. Shares plummeted 1.5% in morning trading. Despite this, McDonald’s reported adjusted earnings per share of $2.67 and net income of $1.87 billion.
The company plans to focus on value meals and popular menu items like snack wraps to attract customers. Early signs suggest this strategy is working, with new menu items selling well before advertising. McDonald’s will also continue its $5 meal deal for the rest of 2025.
Internationally, same-store sales declined 1%, but an international development licensed markets division reported 3.5% growth, beating analyst estimates. The company reiterated its full-year outlook, including plans to open 2,200 locations and spend between $3 billion and $3.2 billion on capital expenditures.
Source: https://www.cnbc.com/2025/05/01/mcdonalds-mcd-q1-2025-earnings.html