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.
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McDonald’s breakfast is somewhat edible, anything else is terrible (including their fries).
McD’s is not cheap anymore, so naturally low income consumers are disappearing.
Customers aren’t “getting nervous”, they are now more discerning and interested in value shopping, and $15 for a McDonalds meal isn’t a value meal.
And the health of Americans is improving already.
Rarely when we go to a fast food place we go to Carls Jr.
Way better burgers. But that depends on the staff also.
McDonalds priced themselves right out of business.
I wonder what the distribution of their customer base is by race and political party.
Wendy’s 2 for $3 breakfast is a pretty good deal. The free drinks (hot and cold) for 60+ is also excellent.
We still eat out, but quit McDonalds because their prices got so high. Cheaper for us to go to small family owned cafes. We have a lot more choices and prices are better.
The Canadian Bacon is now sliced much thinner.
I blame it on the tariffs.
LOL, truth
maybe its because of some of the clientele that frequent these places.
Well, duh! They’ve raised most of their prices through the roof.
I’m sure paying ten bucks for a big mac isn’t helping either.
Wow. They anticipated the tariffs in 2017. McDonald’s forecasters are A-1. Replace it with non-Canadian bacon, and the product and tariffs will improve.
A couple local restaurants/bars have way better and bigger burgers for about the cost of a Big Mac
...said a crew member from the the whaler Essex.
A quarter Pounder, fries, and a pop set me back nearly $11 last week. It’s not the deal it used to be.
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