(qlmbusinessnews.com . Mon 5th May, 2025) London, UK —
Why McDonald’s Q1 US Revenues Suffer Biggest Drop Since 2020
McDonald’s has recorded its steepest drop in US sales since the depths of the Covid pandemic, attributing the slump to widespread economic unease. Despite marketing tie-ins with the Minecraft movie and value-driven deals, customer visits to US outlets open at least a year declined by 3.6% in the first quarter of 2025 compared with the same period last year.
Chief Executive Chris Kempczinski said diners are “grappling with uncertainty” as the US economy contracted at an annualised rate of 0.3% during the quarter—the first quarterly downturn since 2022. He reassured investors that McDonald’s 70-year legacy of innovation and agility equips it to “navigate even the toughest of market conditions.”
Lower-income households, in particular, have pushed back against rising menu prices, prompting McDonald’s to introduce extended price promotions. Nevertheless, the 3.6% like-for-like sales decline marks the biggest fall since the second quarter of 2020, when pandemic restrictions were in force.
The slowdown in US performance dragged global same-store revenues down 1%, despite growth in markets such as Japan, Australia and the Middle East. Analysts suggest that consumers, worried about further price rises and potential job losses amid an uncertain tariff environment, are cutting back on discretionary spending.
Kempczinski noted that his team had finalised the quarter before the “Liberation Day” tariff announcements on 2 April, which added to corporate and consumer confusion. He affirmed McDonald’s commitment to value, saying: “Consumers today are grappling with uncertainty, but they can always count on McDonald’s for exceptional value.”
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
