McDonald's Faces Sales Plunge Amid Economic Uncertainty: What's Behind the Drop?

McDonald’s has reported a surprising 3.6% drop in US sales, marking its biggest decline since the COVID-19 pandemic. Chief executive Chris Kempczinski attributed this downturn to customer concerns over the US economy, with many diners feeling the pinch of rising prices, particularly among lower-income households. Despite initiatives like a partnership with the Minecraft movie and extended pricing deals, customer visits to the iconic burger chain decreased significantly in the first quarter of 2025 compared to the previous year.

The drop coincides with an economic contraction, as the US economy shrank by an annual rate of 0.3%, the first decline since 2022. In light of these economic challenges, former President Donald Trump commented that the sales figures reflected the ”Biden economy” and called for patience for potential improvements.

Danni Hewson, head of financial analysis at AJ Bell, pointed out that Americans are cutting back on discretionary spending due to fears of continued inflation and possible job losses. Amidst this market turmoil, Kempczinski insists that McDonald’s, with its rich 70-year legacy of innovation and adaptability, is equipped to handle these tough conditions and regain market share.

While US sales have plummeted, global like-for-like revenue only saw a 1% decline, benefiting from stronger sales in Japan, Australia, and the Middle East. The chain’s struggle reflects broader issues in the economy, where responses to Trump’s tariffs have resulted in increasing costs for several sectors, including tech and retail, hinting at looming job losses and economic pain in the near future. Businesses are left in limbo as they navigate the potential shifts brought on by evolving trade policies, underlining the complex economic landscape consumers confront today.