McDonald’s Sales Slump in First Quarter
Despite efforts to attract customers, McDonald’s saw a decline in sales in the first three months of the year. Global same-store sales dropped 1%, driven by a 3.6% decline in the United States. This marks a significant change from a year ago, when U.S. same-store sales rose 2.5%.
Revenue fell 3% to $6 billion, and net income declined 3% to $1.9 billion. McDonald’s is a closely watched barometer for consumer spending and sentiment, especially among lower-income consumers, and its financial results pointed to jittery customers.
CEO Chris Kempczinski’s Statement
Consumers today are grappling with uncertainty, McDonald’s CEO Chris Kempczinski said in a news release. He believes McDonald’s has the ability to navigate even the toughest of market conditions and gain market share.
Investors and Wall Street analysts have been closely monitoring consumer-oriented companies with a significant presence in international markets for any signs of anti-American sentiment amid some of President Trump’s policies, including tariffs.
International Market Performance
McDonald’s international operated markets segment, which includes Canada and much of Europe, saw same-store sales decline by 1% from a year earlier. Last year, that segment grew 2.7% in the quarter. The slide in sales was mostly driven by negative sales in Britain.
In other international markets, including China, Japan, and the Middle East, McDonald’s reported a 3.5% rise from year-ago levels, largely because of improved sales in the Middle East and Japan.
Reference : https://www.nytimes.com/2025/05/01/business/mcdonalds-earnings.html
