McDonald’s Surprise Sales Slump: Is the Era of Fast-Food Resilience Over?

McDonald’s Corporation reported a surprise decline in global comparable sales for the first quarter of 2025, as economic uncertainty and tariff disruptions weighed heavily on consumer confidence in key markets. The fast-food giant’s global same-store sales fell by 1%, missing analyst expectations of a 0.95% increase and marking the second consecutive quarterly downturn-the steepest since the Covid-19 crisis. U.S. comparable sales dropped 3.6%, a sharper fall than anticipated, while international operated markets also saw a 1% decline, with Britain singled out for particularly weak performance.

 

The company’s revenue slid 3% to $6 billion, and net income dropped to $1.87 billion, down from $1.93 billion a year ago. CEO Chris Kempczinski described the current environment as “the most challenging market conditions,” citing the impact of President Trump’s shifting tariff policies, which have disrupted supply chains and increased costs for both businesses and consumers. Lower-income customers, especially in the U.S. and Europe, have been hit hardest, pulling back on discretionary spending and dining out less frequently.

 

Despite launching new value menu promotions and limited-time offers to entice budget-conscious diners, McDonald’s struggled to offset the broader consumer pullback. However, the company saw a bright spot in its developmental licensed markets, where sales rose 3.5%, buoyed by a rebound in the Middle East and Japan after last year’s informal boycott.

 

Shares of McDonald’s dipped nearly 2% following the announcement, reflecting growing investor caution amid signs of a potential recession and persistent global economic headwinds.

 

Source: Reuters, The New York Times, CNN