McDonald’s has reported its sharpest decline in US sales since the peak of the COVID-19 pandemic — a sign that even the world’s biggest fast food chain isn’t immune to growing economic uncertainty.
US Sales Slide 3.6% in Early 2025
In the first quarter of 2025, same-store sales in the US fell by 3.6% compared to the same period last year. That’s the steepest decline the chain has seen since mid-2020, when pandemic lockdowns were still widespread.
The dip comes as fewer Americans are visiting McDonald’s, with many consumers tightening their wallets amid broader concerns about the economy.
CEO: Customers Feeling the Strain
McDonald’s CEO Chris Kempczinski acknowledged the challenging environment, saying:
“Consumers today are grappling with uncertainty.”
Still, he remained optimistic about the company’s long-term resilience:
“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.”
Price Backlash and Economic Pressure
In recent months, the company has come under fire, particularly from lower-income households, over rising prices on its menu. The backlash has posed a significant hurdle to efforts aimed at re-energizing business.
At the same time, the US economy shrank by 0.3% in the first quarter of the year — its first quarterly decline since 2022. That contraction has added to the challenges facing consumer-facing businesses like McDonald’s.
The Trump Factor and Market Uncertainty
The period also reflected the early days of Donald Trump’s return to the presidency, as his administration began to implement a series of tariff announcements that triggered uncertainty across global markets.
Although McDonald’s Q1 report doesn’t reflect the full impact of Trump’s widely publicized “Liberation Day” tariffs introduced on April 2, the confusion and reaction to earlier trade moves were already influencing business sentiment.
Global Sales Still Show Growth
Despite the slump in the US, McDonald’s fared better internationally. Sales rose in markets like Japan, Australia, and the Middle East, helping to cushion the global impact.
Still, the weak US performance was enough to drag the company’s global like-for-like sales down by 1%.
Tariffs and Rising Prices Ripple Across Industries
McDonald’s isn’t alone in facing uncertainty due to new trade policies. Tech giant Intel warned that Trump’s tariffs would raise costs and increase the risk of recession. Adidas said the policies would mean higher prices for popular sneakers like the Gazelle and Samba.
Even DHL, the global delivery company, paused shipments worth more than $800 after struggling with new US trade rules, though it later resumed operations following “adjustments” to customs processes.
Trump Responds to Economic Concerns
In response to the latest economic data, President Trump brushed off criticism, saying he simply needs “a little bit of time” to implement his policies. He placed blame on what he called the lingering effects of the “Biden economy,” distancing his administration from the slowdown.
What’s Next for McDonald’s?
For McDonald’s, the road ahead will likely include a mix of price strategy reviews, value offerings, and continued global expansion. As the company works to regain momentum at home, all eyes will be on how it balances affordability with profitability in an increasingly unpredictable US economy.
