McDonald’s customers are losing their appetite for burgers and fries as mounting economic uncertainty has Americans cutting back on discretionary spending.
The slump marked the company’s worst same-store sales decrease since a 8.7% nosedive in the second quarter of 2020, when the pandemic ravaged retailers.
“We entered 2025 knowing that would be a challenging time for the [quick-service restaurant] industry due to macroeconomic uncertainty and pressures weighing on the consumer,” CEO Chris Kempczinski told investors on Thursday. “During the first quarter, geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected.”
“We’re not immune to the volatility in the industry or the pressures that our consumers are facing,” Kempczinski added.
McDonald’s has noticed this shift in consumer spending particularly among lower-income diners, with store traffic dropping nearly 10% this quarter among the demographic.
“Traffic growth from the high-income cohort remains solid, illustrating the divided U.S. economy, where low- and middle-income consumers in particular are being weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook,” Kempczinski said.
“If we get value and affordability right, we can win in the context of what’s going on in the marketplace,” Kempczinski said.
