Michelle ThompsonMcDonald’s has reported its sharpest drop in US sales since the peak of the COVID-19 pandemic, attributing the decline to growing public concern about the US economy.
Despite promotional efforts like a collaboration with the Minecraft movie and extended discounts, customer traffic at US locations fell during the first quarter of 2025 compared to the same period last year.
CEO Chris Kempczinski acknowledged that consumers are dealing with economic uncertainty but maintained that McDonald’s is well-equipped to handle challenging conditions. The company has been trying to reconnect with customers amid backlash over higher prices, particularly from lower-income groups.
Sales at US branches open for at least a year dropped by 3.6% between January and March 2025 — the steepest such decline since mid-2020 when pandemic measures were in effect.
The sales drop occurred alongside a 0.3% annualized contraction in the US economy during the same period — the first quarterly decline since 2022.
In response to the economic data, President Trump urged patience, attributing the weak figures to his predecessor’s administration. Danni Hewson from AJ Bell noted that American consumers are tightening their spending due to inflation concerns and fears of potential job losses linked to economic instability and changing trade policies.
McDonald’s Q1 results cover the early part of Trump’s presidency and end just before his tariff announcements on April 2, known as “Liberation Day,” which further unsettled businesses and consumers.
Kempczinski emphasized that McDonald’s long-standing reputation for adaptability and value positions it to gain ground despite the economic headwinds.
Globally, McDonald’s saw a 1% decline in comparable sales during the same quarter, with gains in markets like Japan, Australia, and the Middle East failing to offset the US slump. Other companies, including Intel and Adidas, also expressed concerns about Trump’s tariffs, citing higher costs and recession risks. DHL briefly halted over $800 worth of shipments due to US trade rules before resuming deliveries after revising customs procedures.
While Trump and his supporters argue the tariffs will drive job creation by encouraging domestic production, economists and businesses warn they may instead trigger job cuts and short-term economic hardship.
