Why they aren't 'McLovin' it' at the Golden Arches
Share and Follow

McDonald’s sales dropped in the beginning of the year, marking the second consecutive quarter of declines as customers pull back their spending amid economic uncertainty.
In the US, its largest market, same-store sales dropped 3.6 per cent — the chain’s worst drop since 2020 during the height of the COVID-19 pandemic when people were told to stay home.

Net income for the first quarter was $US1.87 billion ($2.93 billion), a decline from $US1.93 billion ($3.03 billion) compared to the same period a year ago. However, McDonald’s notes that since last year had a Leap Day, or an extra day to make money, that slightly hurt its sales in 2025.

McDonald’s had another tough earnings report as consumers pull back on their spending. (David Paul Morris/Bloomberg/Getty Images via CNN)

McDonald’s CEO Chris Kempczinski said in a release that consumers are “grappling with uncertainty” but that he remains optimistic in the company’s “ability to navigate even the toughest of market conditions and gain market share”.

On a call with analysts, Kempczinski said “geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected”.

Visits to restaurants in its largest markets, including the US, fell more than predicted.

Although he expects McDonald’s to “outperform” its competitors, the chain isn’t “immune to the volatility in the industry or the pressures that our consumers are facing”.

McDonald’s is also seeing worsening pullback in spending from low-income consumers, which is down nearly double digits versus a year ago.

And, unlike a few months ago, spending from middle-income consumers also “fell nearly as much, a clear indication that the economic pressure on traffic has broadened”.

The burger invented because no-one went to McDonald’s on Fridays

The chain’s blunt assessment of the economic environment mirrors that of other companies, with Chipotle, Yum! Brands, Domino’s Pizza and Starbucks all recently reporting meager earnings results as consumer sentiment sinks.

The first quarter heralded the release of its revamped value menu, which was supposed to rev up sales for budget-conscious customers. 

However, a new meal promotion with A Minecraft Movie (released by CNN’s sister company Warner Bros. Pictures) was perhaps more successful in driving visits, with a third-party tracking service measuring measurable spikes to its restaurants.

Shares of McDonald’s fell nearly 2 per cent in early trading.

Share and Follow
You May Also Like

Labor Criticizes Trump’s New Tariff Threat as ‘Unjustified,’ While Coalition Labels It a ‘Bad Policy’

United States President Donald Trump says most trading partners that do not…
SPECIAL 9872 Ansett Takeoff; Sydney; Picture by Dallas Kilponen; Sun Herald; 29th September 2001. Pic shows Ansett planes ready for work at Sydney Airport. Tail

Defunct Australian Airline from 2001 Set for Revival

A once-mighty Australian airline which stopped flying in 2001 has resumed business…
AFL legend Nicky Winmar accused of choking, assaults

Former AFL Star Nicky Winmar Allegedly Involved in Assault and Choking Incident

AFL great Nicky Winmar has been accused of two assaults and of…
Vaping Ban australia

Government Refutes Surprising Smoking Allegation Following Vape Ban

The federal government has rejected research that claims smoking increased among young…
Nationals Leader David Littleproud claims Agriculture Minister Julie Collins ignored advice from the Inspector-General of Biosecurity when she lifted a ban on beef imports from the United States.

Nationals Claim Government Failed to Consult Scientific Advisory Group on US Beef Ban

The Nationals have claimed Agriculture Minister Julie Collins failed to consult the…

Reasons Your Energy Bills May Be Increasing and How to Address Them

A new report has found one in five Australian households are struggling…
Gunman 'neutralised' after police officer, civilians shot in Manhattan

Shooter Subdued After Police Officer and Civilians Are Wounded in Manhattan

A gunman is believed to be dead after shooting one New York…

“Generational Impact: The Lasting Consequences of Starvation in Gaza”

Israel has announced it will make way for humanitarian aid deliveries into…