Posted on 05/01/2025 8:26:41 AM PDT by Diana in Wisconsin
McDonald’s sales dropped in the beginning of the year, marking the second consecutive quarter of declines as customers pull back their spending amid economic uncertainty.
In the United States, its largest market, same-store sales dropped 3.6% — the chain’s worst drop since 2020 during the height of the Covid pandemic when people were told to stay home.
Net income for the first quarter was $1.87 billion, a decline from $1.93 billion compared to the same period a year ago. However, McDonald’s notes that since last year had a Leap Day, or an extra day to make money, that slightly hurt its sales in 2025.
McDonald’s CEO Chris Kempczinski said in a release that consumers are “grappling with uncertainty,” but that he remains optimistic in the company’s “ability to navigate even the toughest of market conditions and gain market share.”
On a call with analysts, Kempczinski said “geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected.” Visits to restaurants in its largest markets, including the US, fell more than predicted.
Although he expects McDonald’s to “outperform” its competitors, the chain isn’t “immune to the volatility in the industry or the pressures that our consumers are facing.”
McDonald’s is also seeing worsening pullback in spending from low-income consumers, which is down nearly double digits versus a year ago. And, unlike a few months ago, spending from middle-income consumers also “fell nearly as much, a clear indication that the economic pressure on traffic has broadened.”
The chain’s blunt assessment of the economic environment mirrors that of other companies, with Chipotle, Yum! Brands, Domino’s Pizza and Starbucks all recently reporting meager earnings results as consumer sentiment sinks.
(Excerpt) Read more at channel3000.com ...
Yet they refuse to tighten their own “Corporate” belts a bit and lower their prices. The “but our own costs” is BS.
They placed themselves in this position by deciding to pay their employees too much and fully supporting liberal minimum wage hikes. If they had fought against it they would not be in this position.
They did recently offer a couple “deals”, but everything else on the menu is still at inflated Covid prices...
Thank you minimum wage through the roof stupidity.
At least inflation can go down but minimum wages will never ever go down. This will squeeze out small businesses all over the country.
The Dollar Menu is now one French Fry.
Our Grandkids love the play area. But they hate the food. That tells me a lot.
My idea of fast food is a sandwich at home.
Yet they refuse to tighten their own “Corporate” belts a bit and lower their prices. The “but our own costs” is BS.
They placed themselves in this position by deciding to pay their employees too much and fully supporting liberal minimum wage hikes. If they had fought against it they would not be in this position.
They did recently offer a couple “deals”, but everything else on the menu is still at inflated Covid prices...
___________________________________________________________
Doesn’t matter, eventually all fast food will be large kiosks with no human workers.
It is often said inflation is killing America but the hidden in plain sight malady is the ridiculous minimum wage laws/rates.
Carrolls Hamburgers..."Change back from your dollar".
The customers aren’t getting nervous, they’re getting nauseous.
McRib will save McD’s and the country.
Given the crazy price rises the volume reductions must be mind boggling.
For $15, I can buy 2 lbs of hamburg (8-Quarter pounders), 3 lbs of potatoes and a quart of milk...Aldi has good beef.
“Carl’s Jr. F you, I’m Eating!”
Prices up. Quality down.
It doesn’t take a rocket scientist…
“McDonalds priced themselves right out of business.”
They sure did. Corporate and Administration refuse to tighten their own belts a bit to lower prices and help increase volume sales.
I love their coffee.
I buy it own Amazon, it is McCafe Columbian in the blue can.
$15, plus the $5.00 ubereats delivery charge. LOL
Biden’s inflation will take a lot of effort to mitigate
Their burgers look like they have been wadded up in the glove compartment of a car for two days.
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