McDonald’s posts greatest US gross sales drop since Covid-19 pandemic
McDonald’s has suffered its greatest drop in US gross sales for the reason that top of Covid, a fall that it mentioned was pushed by wider issues concerning the US economic system.
The world’s largest burger chain’s income at US shops open at the very least a yr sank 3.6% within the first three months of 2025 in contrast with the identical interval in 2024, as prospects diminished their visits.
It marked the steepest decline in like-for-like gross sales within the US for the reason that three months to the top of June 2020 when many pandemic restrictions had been nonetheless in place.
Chief government Chris Kempczinski mentioned prospects had been “grappling with uncertainty” however assured buyers that the agency might “navigate even the hardest of market circumstances”.
McDonald’s has been working for months to attempt to re-ignite its enterprise, after dealing with backlash from prospects, particularly decrease earnings households, over rising costs.
The agency’s newest drop in gross sales coincided with a contraction within the US economic system, which shrank at an annual charge of 0.3% within the first three months of 2025.
It marked the primary quarterly decline since 2022.
The figures mirrored simply over two months of Donald Trump’s presidency – as many companies and customers reacted with confusion to his barrage of tariff bulletins – however not his “Liberation Day” tariff plans on 2 April
Over the identical three-month interval, the hunch in McDonald’s US gross sales dragged its total like-for-like income down 1% at the same time as gross sales in Japan, Australia, and the Center East grew.
Mr Kempczinski mentioned: “Customers as we speak are grappling with uncertainty, however they’ll at all times rely on McDonald’s […] for distinctive worth”.
“McDonald’s has a 70-year legacy of innovation, management, and confirmed agility, all of which give us confidence in our capacity to navigate even the hardest of market circumstances and achieve market share,” he added.
Companies have had a mixture of reactions since Trump started revealing and imposing his plans for tariffs, that are a tax payable by an individual or agency shopping for a very good from abroad.
This week, expertise large Intel mentioned prices would rise and a recession was extra seemingly due to Trump’s tariffs.
Sportswear model Adidas mentioned they might result in larger costs within the US for fashionable trainers together with the Gazelle and Samba.
In the meantime, supply large DHL paused deliveries price greater than $800 (£603) as a result of US commerce coverage earlier than lifting them after negotiating “changes” to customs rues.
Trump and his allies have mentioned the insurance policies will assist to carry extra jobs to the US as companies base factories and operations the nation to keep away from the brand new taxes.
Nonetheless, many corporations and economists have mentioned this will probably be troublesome to realize and can seemingly imply job losses and financial ache at the very least within the brief time period.
Reacting to yesterday’s financial figures, Trump mentioned he wanted “somewhat little bit of time” – calling the numbers a mirrored image of the “Biden economic system”, a reference to the previous president.
