McDonald's Reports 1% Global Sales Decline Amid Economic Pressures

McDonald’s reported a rare decline in global and U.S. same-store sales in the first quarter of 2025, with a 1% global drop and a steeper 3.6% fall in the U.S.—the worst domestic performance since the early days of the pandemic. The dip is attributed to heightened economic anxiety, inflation, and waning confidence among low- and middle-income consumers, who are pulling back on fast food spending. Despite these headwinds, McDonald’s managed to slightly beat earnings expectations, aided by wealthier customers and international markets like the Middle East and Japan, which showed growth. To counteract declining U.S. traffic, the company is promoting value deals, such as the $5 Meal Deal, aiming to retain budget-conscious diners. CEO Chris Kempczinski cited concerns over potential U.S. tariffs and their impact on pricing, while analysts noted that rivals like Chipotle are also experiencing softer demand, signaling broader consumer caution. Investors responded cautiously to the results, reflecting concerns that even industry leaders may not be immune to global economic pressures.