McDonald’s reports worst numbers since covid and admits people are pulling back because everything feels too expensive
McDonald’s is feeling the heat in 2025. The fast-food giant just logged its second straight quarter of declining sales as consumers tighten their belts in the face of growing economic pressure — and the numbers aren’t pretty.
In the U.S., its biggest market, same-store sales dropped a sobering 3.6%, making it the steepest dip since 2020 — back when Covid lockdowns kept people indoors and drive-thrus were one of the few lifelines to a hot meal.
First-quarter net income came in at $1.87 billion, slipping from $1.93 billion in the same stretch last year. McDonald’s pointed out that 2024 had a Leap Day, so that bonus day of business is missing this time — a small but notable drag on revenue.
CEO Chris Kempczinski acknowledged the headwinds in a company statement, saying customers are “grappling with uncertainty,” but stressed confidence in McDonald’s “ability to navigate even the toughest of market conditions and gain market share.”
Still, during a call with analysts, Kempczinski didn’t sugarcoat the situation: “Geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected.” In other words, even the Golden Arches aren’t safe from the fog of war and financial anxiety.
Visits to stores in major markets — the U.S. included — came in lower than expected. That’s especially concerning given that McDonald’s had rolled out a value menu meant to win over cost-conscious diners.
The pain isn’t limited to just the lowest income brackets anymore. According to Kempczinski, while low-income customers have pulled back their spending by nearly double digits, middle-income folks are now following suit — “a clear indication that the economic pressure on traffic has broadened.”
And it’s not just McDonald’s. Chipotle, Domino’s, Starbucks, and Yum! Brands have all reported lackluster earnings recently. The trend is clear: Consumers are feeling the pinch, and fast food isn’t immune.
Despite a big push in Q1 with a revamped value menu, it seems a cross-promo with The Minecraft Movie did more to get people through the doors. A third-party firm tracked a notable bump in restaurant traffic linked to the promo.
McDonald’s is now banking on new product launches to revive momentum. Chicken strips — a longtime fan favorite — are coming back after being axed a few years ago. And yes, the return of the cult-classic “Snack Wrap” is reportedly in the pipeline, to the joy of many.
Kempczinski also hinted at tests of new customizable beverages being rolled out later this year in partnership with franchisees, inspired by the company’s 2023 launch of CosMc’s, a side project aimed at challenging fast-rising chains like Dutch Bros.
Even with the brand’s reach and loyalty, Wall Street reacted to the weak performance. Shares of McDonald’s (MCD) slipped almost 2% in early trading.
