McDonald’s sales unexpectedly dropped at a level not seen since the COVID-19 pandemic dragged on businesses in 2020.
Investors got the bad new Thursday when McDonald’s Chairman and CEO Chris Kempczinski told them during a conference call that numbers at U.S. stores opened at least one year had slumped 3.6% in the first quarter of 2025. He blamed the decline on lower and middle-income consumers scaling back on eating out because of inflation and other economic concerns.
Customers earning at least $100,000 continued to visit steadily, Kempczinski said.
The average U.S. workers pulls in under $67,000 annually according to the latest figures from the Social Security Administration.
Kempczinski told investors McDonald’s isn’t immune to the downturn that’s impacted competitors including Chipotle and Yum Brands, which runs Taco Bell and KFC, but he likes the Golden Arches’ chances of coming out on top.
“We believe McDonald’s can weather these difficult conditions better than most,” he said.
McDonald’s same-store first quarter sales — which include operations that have been in business at least a year — fell 1% globally. Traffic reportedly grew in China, the Middle East and Japan. Analysts had predicted a 2% increase.
McDonald’s announced Thursday that its $5 Meal Deal introduced in June is performing well and will run until at least the end of the year. The company may revisit its less effective McValue menu.
A promotional meal tied to “A Minecraft Movie” introduced last month could help second quarters number. Collectible figures tied to that offering sold out in less than two weeks. The fast food giants also plans to drive traffic by bringing back its once-popular Snack Wrap, which started disappearing from stores in 2016, shortly before pandemic lockdowns began.
With News Wire Services
https://www.nydailynews.com/2025/05/01/us-mcdonalds-sales-dip-amid-economic-concerns/