McDonald's has fallen the most sharply in key sales metrics since 2020. The burger giant cites “enhancing anxiety” among its customers as President Trump's tariffs threaten to reheat inflation.
President Trump's favorite Fast Food Joint says sales in the same U.S. store sales, or in stores that have been open for at least a year, have plummeted by 3.6%, with the chain attributed to bad weather and increasingly cautious consumers.
This is the worst drop since the Covid-19 pandemic when sales in the same store plummeted 8.7%.
As Americans fear that clearing tariffs could reheat inflation or cause a recession, McDonald said it has been hit broadly by traffic.
CEO Chris Kempczynski said Thursday during the proceeds call.
“We are being cautious about the overall health of our consumers,” he added.
During the revenue call, McDonald said he plans to focus on offering the McValue menu and extend sustained inflation and high interest rates as Hammer's consumer sentiment for the rest of 2025.
The company is also adding new menu items to attract customers, including taking home fan favorite chicken strips forever and partnering with “Minecraft Movie” with a limited edition meal.
McDonald's aims to boost profitability by adding new drinks to its menu, inspired by COSMC's spin-off restaurant, which sells trendy flavored coffee and energy drinks.
According to StreetAccount, analysts expected sales at the same U.S. stores to fall 1.7% in the first quarter.
McDonald's global same store sales fell by 1% over the same period. The company said the decline was due to comparisons to last year's Long Leap Day quarter. Sales in the same store will remain flat, not counting the days of the leap, executives said.
McDonald's shares fell 1.3% to $315.42 in trading earlier Thursday.
McDonald's reported net profit of $2.66 from the previous year, with first quarter net income of $1.87 billion ($2.60 per share) and $1.93 billion, or $2.66 per share.
It reported that it had adjusted its earnings per share of $2.67, excluding restructuring fees.
Revenue fell 3% to $5.96 billion, with no forecast of $6.09 billion.
In the international operating market, sales for the same store fell by 1%. The group includes the largest international markets, including the UK, Australia and France, accounting for about half of the company's revenue.
Analysts had flatly anticipated sales of the same stores in these markets.
The international developmental licensing market, including Japan, China and Brazil, reported the same store sales growth of 3.5%, surpassing the expected jump of 3.2%.
Despite mixed results, McDonald's has reaffirmed its full-year forecast. The outlook includes potential impacts from Trump's tariffs, executives said.
The company plans to open 2,200 locations this year and spend between $3 billion and $3.2 billion on capital expenditure this year, according to regulatory filings.
McDonald's hopes these new locations will increase systemwide sales growth by around 2%.
