McDonald's sales sank last quarter, ending one of the worst-performing periods for the chain since the beginning of the COVID-19 pandemic.
Earnings reported Thursday showed U.S. same-store sales were down 3.6%, well below analyst expectations. Globally, sales were down 1%.
The quarter is the worst performance for the chain since 2020, when lockdowns cause traffic to restaurants and retail to crater. Company officials say patronage from lower- and middle-income demographics slumped by double-digit percentages as consumers cut back on spending amid concerns over inflation and the future of the economy.
“We believe McDonald’s can weather these difficult conditions better than most,” McDonald's CEO Chris Kempczinski said. “However, we’re not immune to the volatility in the industry or the pressures that our consumers are facing.”
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While inflation and consumer sentiment posed problems for the company, it said tariffs imposed by President Donald Trump — and the ensuing changes in geopolitical sentiment — are not likely to affect its financial projections for the year.
McDonald's says it saw strong sales from tie-in meals and figures for "A Minecraft Movie." It also says it will continue its $5 meal deal, which was originally planned as a limited offer, through the end of 2025.
