McDonald's sees worst sales since 2020 amid economic pressure and weak demand
McDonald's sees worst sales since 2020 (Illustrative photo: Getty Images)
McDonald's has reported its steepest US sales decline since 2020, driven by shrinking demand among middle-income consumers and growing anti-American sentiment abroad, NBC News reports.
In the first quarter of 2025, McDonald's reported a 3.6% drop in same-store sales in the US — its worst result since the height of the pandemic in 2020, when sales plunged 8.7%.
Analysts had forecast a more modest decline of just 1.7%. McDonald's CEO Chris Kempczinski explained, "Consumers today are grappling with uncertainty," attributing the downturn to reduced customer traffic.
The decline was particularly sharp among middle-income customers, whose visits dropped by nearly double digits.
Staff packing orders at McDonald's counter (Illustrative photo: Getty Images)
More people are skipping breakfast outside the home to save money. The company also noted a continued decline in traffic among low-income consumers.
"People are just visiting less," McDonald's said.
Meanwhile, high-income customer traffic remained stable, reflecting the broader economic divide: wealthier Americans continue to spend, while others cut back.
Anti-American sentiment growing abroad
Beyond domestic challenges, the company is also facing international headwinds.
McDonald's reported an increase in anti-American sentiment in certain markets, especially in Northern Europe and Canada.
"We have seen a rise in people saying they plan to reduce purchases of American brands," company representatives said. While the McDonald's brand hasn't yet been directly affected, the company acknowledged potential risks to future sales.
Despite the warning signs, McDonald's is maintaining its full-year outlook and plans to open 2,200 new locations, expecting sales growth of more than 2%.
Tray with McDonald's fries, drinks, and desserts (Illustrative photo: Getty Images)
Among the bright spots are a successful promotional tie-in with the upcoming "Minecraft Movie" and revamped value offerings.
How major companies started 2025
Tesla, meanwhile, is off to a rough start in 2025 — its stock has plummeted, vehicle sales have dropped to a three-year low, and investor confidence is waning amid stalled innovation.
In contrast, other corporate giants are showing stronger momentum.
Meta exceeded market expectations, driven by surging ad revenue and bold investments in AI.
Coca-Cola, on the other hand, reported increased profits despite ongoing tariff pressures and global economic uncertainty.
