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Chicago, Illinois – McDonald’s has reported its steepest U.S. sales decline since the height of the COVID-19 pandemic, a troubling sign for the fast food giant as economic uncertainty weighs heavily on American consumers. The company announced that U.S. same-store sales fell by 3.6% in the first quarter of 2025, surpassing analysts’ expectations of a 1.7% drop and marking the most significant decline since the 8.7% plunge recorded in Q2 of 2020.
CEO Chris Kempczinski acknowledged the challenging environment, stating, “Consumers today are grappling with uncertainty,” as lower guest counts contributed to the sharp decline. McDonald’s is just the latest in a string of major restaurant chains—including Chipotle, Domino’s, and Starbucks—to report sluggish or falling sales as U.S. households cut back on discretionary spending.
On a call with investors, executives clarified the financial pressures hitting their customer base. Foot traffic among middle-income consumers dropped by nearly double digits, while visits from low-income diners continued their downward trend. Many are even skipping breakfast or eating at home—once a key growth segment for McDonald’s.
On the other hand, high-income consumers remained stable in their spending, highlighting the growing economic divide. “People are just visiting less,” one executive noted bluntly.
McDonald’s also missed its revenue targets for the third time in the past four quarters, reflecting a broader economic contraction. The U.S. economy shrank at an annualized rate of 0.3% in Q1 2025, the first decline since 2022. Economists and business leaders point to uncertainty triggered by President Donald Trump’s escalating tariff policies, which have begun affecting prices across multiple sectors.
Though McDonald’s brand image has remained mostly intact overseas, executives admitted to a noticeable increase in anti-American sentiment in some markets, including northern Europe and Canada. Internal surveys indicated that more international consumers were consciously choosing to reduce purchases of American brands.
Despite these setbacks, the company is holding firm to its full-year outlook. It plans to open 2,200 new locations worldwide and continue pushing value-oriented promotions and strategic tie-ins, such as a recent successful partnership with the upcoming “Minecraft Movie.” Executives said these moves should help drive sales growth of a little over 2% globally.
Still, Kempczinski emphasized caution. “While these numbers are disappointing, McDonald’s has a 70-year legacy of innovation, leadership, and proven agility,” he said. “We are confident in our ability to navigate even the toughest of market conditions and gain market share.”
Shares of McDonald’s fell 1.6% in early trading following the report.
As rising prices and trade policy shifts shake consumer confidence, even the most iconic brands are finding it difficult to maintain momentum. For McDonald’s, a company long seen as a bellwether of middle-class spending habits, the decline in U.S. sales is more than just a red flag for Wall Street—it’s a symptom of an increasingly cautious and divided American economy.
