The Smartest Investors Club
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Smartest Investors Club

Business

Consumers are not lovin’ it: McDonald’s has its worst quarter since 2020

by May 1, 2025
May 1, 2025
Consumers are not lovin’ it: McDonald’s has its worst quarter since 2020

McDonald’s reported its worst quarterly sales for the United States since the height of the pandemic in 2020, the latest restaurant chain to be affected by America’s turbulent economic environment.

The burger giant reported U.S. same-store sales fell 3.6%, the largest three-month drop since Q2 2020, when they plunged 8.7%. Forecasts had been for a decline of just 1.7%.

‘Consumers today are grappling with uncertainty,’ McDonald’s Chairman and CEO Chris Kempczinski said in a statement, as the chain cited lower guest counts.

In a follow-up call with investors, McDonald’s executives said that traffic among middle-income diners fell by ‘nearly double digits’ alongside an ongoing drop-off among low-income ones. As an example, they said more people appear to be skipping breakfast entirely to cut back on spending, or eating breakfast at home.

‘People are just visiting less,’ they said.

High-income traffic, meanwhile, remained stable, they said.

That reflects the economy writ large: While less-well-off consumers rein in transactions to focus on essentials, wealthy consumers continue to spend freely.

McDonald’s is the latest restaurant chain to report weak financial results amid signs that consumers are pulling back on discretionary spending. Chipotle, Domino’s, Pizza Hut, Shake Shack and Starbucks all saw slowing or declining sales in their quarter, with many citing particular weakness among lower-income consumers.

McDonald’s also reported revenues that missed forecasts for the third time in four quarters.

The more volatile economic environment that’s been accelerated by President Donald Trump’s tariffs policies is also being felt abroad.

On the call, company officials said that while the McDonald’s brand hadn’t been affected by worsening perceptions of the U.S. by overseas consumers, its internal surveys had picked up a notable uptick in anti-American sentiment, particularly among diners in northern Europe and Canada.

‘We have seen … an increase in people in various markets saying they’re going to be cutting back on purchases of American brands,’ they said.

It nevertheless maintained its full-year financial outlook, including plans to open 2,200 locations, which it said should help boost sales growth by slightly more than 2%. It said a promotional tie-in with the ‘Minecraft Movie’ had been a hit, and that its refreshed value offerings continued to position it strongly compared with competitors.

Still, officials said on the call that they remained “cautious about consumer sentiment.”

Shares fell 1.6% in early trading.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Tesla denies report that the EV maker is looking to replace Elon Musk
next post
Trump executive order stands up presidential religious liberty commission

You may also like

Tesla’s law firm drafts Delaware bill that could...

Tesla’s Cybertruck recalled for a fourth time over...

IRS announces when it will begin accepting and...

Tesla ordered by auto regulators to provide data...

Tariff threat looms over the year’s biggest electronics...

Chipotle says restaurants will give bigger servings after...

Laid off from a nearly six-figure job, this...

Starbucks union votes to authorize strike ahead of...

RTX, GE Aerospace expect more than $1 billion...

Netflix inks deal to stream its first NFL...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Silver47 Announces Graduation to Tier 1 Status on the TSX Venture Exchange

    • Thick High-Grade Graphite Drilling Results In New Zone

    • GOP holdouts sound alarm on $36T debt crisis as Trump’s ‘big, beautiful bill’ passes House vote

    • 23andMe bankruptcy prompts Cornyn-Grassley-Klobuchar bipartisan bill to protect sensitive genetic data

    • German tourist carrying ancient Roman artifact on e-scooter chased by Italian police

    Categories

    • Business (1,660)
    • Investing (4,914)
    • Politics (7,743)
    • World (6,262)
    • Terms & Conditions
    • Privacy Policy
    • About us

    Disclaimer: thesmartestinvestorsclub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 thesmartestinvestorsclub.com | All Rights Reserved


    Back To Top