Wednesday morning, fast-food leader McDonald’s announced its worst quarterly drop in its recent U.S. sales. This decrease is the biggest since the peak of the COVID-19 pandemic. The global fast-food giant revealed that its revenue at U.S. stores open for at least a year fell by 3.6% in the first quarter of 2025 compared to the same period in 2024. This deepening led to a wider 1% decline in overall company like-for-like revenue.
U.S. sales are declining, pulled down by broader economic woes. April 2025 The U.S. economy contracted at an annualized rate of 0.3% in the first quarter of 2025. McDonald’s Chief Exec Chris Kempczinski noted that customers are in a “wobbly” position. This catch-22 has led to a 25% drop in visits to its stores. As consumers stopped spending on non-essential items due to inflationary pressures, McDonald’s felt the effect with their first quarterly same store sales drop since Q3 2022.
While McDonald’s was struggling in the U.S., they were booming in other markets around the world. Japan, Australia and the Middle East all recorded increases during that same three-month period. As American car sales fell off a cliff, these markets helped drive Fiat-Chrysler’s global success, reflecting stark consumer preferences shifting from North America to other continents.
Given those headwinds, Kempczinski said he was encouraged by what McDonald’s was doing to fight their way through a tough market. He noted the firm’s deep history of innovation and cutting edge work as industry leaders.
“McDonald’s has a 70-year legacy of innovation, leadership, and proven agility, all of which give us confidence in our ability to navigate even the toughest of market conditions and gain market share,” – Chris Kempczinski.
In the letter, he assured investors that even in this difficult operating environment, McDonald’s is focused on delivering the best possible value to its customers.
“Consumers today are grappling with uncertainty, but they can always count on McDonald’s […] for exceptional value,” – Chris Kempczinski.
Thus, it should come as no surprise that McDonald’s is in the midst of a historic sales collapse. External factors, such as the overall economic environment and recent political announcements on tariff policy, are further undermining consumer confidence. The company’s ability to adapt and innovate will be crucial as it seeks to reclaim market strength amid these challenges.