Fast-food chains are feeling the pinch as economic uncertainty takes hold. Recent reports show that same-store sales have declined across various chains, including Wendy’s (-3.6%), KFC (-5%), Pizza Hut (-5%), and Popeyes (0.9%). However, McDonald’s bucked the trend with a 2.5% sales increase.
The decline in fast food sales is particularly noticeable in breakfast items, which are seen as economically sensitive. According to Wendy’s interim CEO Kenneth Cook, when consumer uncertainty increases, people tend to choose eating at home over dining out, including for breakfast.
CEO Christopher Kempczinski of McDonald’s echoed this sentiment, stating that breakfast is the weakest daypart and easiest meal to skip or eat at home. This trend suggests that low-income consumers are less likely to visit fast-food restaurants, which is a critical demographic for these businesses.
Meanwhile, the US government has announced a new fee on chip sales to China, with a 15% levy imposed as a condition of granting export licenses. This move marks an unprecedented approach to regulating sensitive product exports.
Additionally, the Trump administration’s stance on crime and homelessness has intensified, with President Trump urging homeless individuals to “move out” of Washington D.C. The president’s views on this issue have fueled renewed threats for a federal takeover and increased law enforcement presence in the city.
Source: https://www.axios.com/2025/08/08/wendys-pizza-hut-fast-food-economy