Americans Skip Burgers... McDonald's U.S. Sales See Worst Decline Since COVID-19

U.S. Sales Down 3.6% in Q1 Compared to Last Year
Largest Decline Since COVID-19 Pandemic

McDonald's, the American fast-food company, reported a decline in U.S. sales for the first quarter (January to March) of this year. Analysts attribute this to consumers tightening their wallets amid concerns about an economic downturn in the U.S. due to ongoing uncertainty, which has also affected McDonald's sales.

On April 30 (local time), McDonald's announced that U.S. same-store sales in the first quarter had decreased by 3.6% compared to the same period last year. This represents the largest drop since the mid-2020 COVID-19 pandemic period, when sales fell by 8.7%.

Chris Kempczinski, Chief Executive Officer (CEO), stated, "Geopolitical tensions have added to the uncertainty and weakened consumer sentiment more than expected," adding, "We are not immune to the volatility in the industry or the pressures faced by consumers."

Kempczinski also noted, "People are becoming more cautious," and added that some customers are opting to have breakfast at home or skip meals instead of visiting McDonald's.

He further explained that, looking at industry-wide sales in the U.S. during the first quarter, visits from low-income consumers declined by nearly 10%, with a similar decrease among middle-income consumers, indicating that concerns about the economy persist among consumers.

The Wall Street Journal (WSJ) pointed out, "As regular customers reduce their fast-food consumption, concerns about an economic downturn are spreading among American consumers."

The Financial Times (FT) also analyzed, "After tariffs unsettled the market and raised concerns about U.S. employment prospects, McDonald's experienced a decline in U.S. sales."

It was also reported that, due to the tariff policies of the Donald Trump administration, there is a growing sentiment of boycotting American brands. Kempczinski said the company surveyed consumers in major global markets regarding their views on the U.S., American brands, and McDonald's. While public opinion toward McDonald's remained unchanged, more people indicated they would reduce purchases of American brands. This sentiment, he noted, increased by 8 to 10 percentage points, particularly in Northern Europe and Canada.

Domino's Pizza, Starbucks, KFC, and Pizza Hut also announced their first-quarter results this week, reporting declines in U.S. sales.