McDonald’s has reported its largest drop in US sales since the height of the COVID-19 pandemic, with a 3.6% decline in like-for-like sales compared to the same period last year. The decline was attributed to customers’ concerns over the US economy and rising prices.
Chief Executive Chris Kempczinski said that consumers are “grappling with uncertainty” but assured investors that McDonald’s can navigate even the toughest market conditions. Despite efforts to reignite enthusiasm among customers, revenue at US McDonald’s outlets sank for the first time in three months of 2025.
The decline in sales coincided with a contraction in the US economy, which shrank by 0.3% in the first quarter of 2025. President Trump has called for patience, saying that the numbers reflect the “Biden economy”. However, analysts warn that Americans are cutting back on discretionary spending due to concerns over rising prices and potential job losses.
The drop in sales reflects a broader impact of US trade policies, including tariffs, which have caused uncertainty among businesses and consumers. Companies such as Intel and Adidas have warned of higher costs and potential price increases, while delivery giant DHL paused deliveries worth over $800 before lifting them after negotiations with customs officials.
McDonald’s global like-for-like revenue also declined by 1% in the same period, despite growing sales in Japan, Australia, and the Middle East. The company remains confident in its ability to navigate challenging market conditions and gain market share.
Source: https://www.bbc.com/news/articles/cy4vzpggkjno