Photo by Robi Pastores
McDonald’s has reported its sharpest decline in U.S. sales since the height of the Covid-19 pandemic, citing growing consumer unease over the state of the economy.
The fast food giant said same-store sales in the U.S. fell 3.6% in the first quarter of 2025 compared to the same period a year earlier. It marks the worst performance since the second quarter of 2020, when widespread pandemic restrictions were still in effect.
CEO Chris Kempczinski attributed the slump to a broader sense of economic uncertainty among customers, particularly those in lower-income brackets. “Consumers today are grappling with uncertainty, but they can always count on McDonald’s for exceptional value,” he said. “We have a 70-year legacy of innovation, leadership, and agility that gives us confidence in our ability to navigate even the toughest of market conditions.”
The company has been working to win back customers after months of backlash over rising menu prices. The downturn in U.S. sales coincided with a 0.3% annualized contraction in the U.S. economy during the first quarter — the first such decline since 2022.
The latest economic figures reflect just over two months of Donald Trump’s second presidency. Businesses and consumers have responded warily to his wave of new tariff announcements, though his more extensive “Liberation Day” tariff plans on April 2 were not reflected in the quarterly data.
Globally, McDonald’s overall like-for-like revenue dipped 1%, dragged down by the U.S. slowdown, despite growth in markets such as Japan, Australia, and the Middle East.
Trump’s tariffs have triggered mixed reactions from corporate America. Intel warned of rising costs and a heightened risk of recession, while Adidas said the levies would drive up U.S. prices on popular sneakers like the Gazelle and Samba. Delivery firm DHL briefly paused shipments over $800 due to tariff-related customs issues, later resuming service after reaching revised terms.
Trump and his supporters argue the tariffs will bring jobs back to the U.S. by encouraging domestic production. However, many economists and business leaders caution that the short-term effects could include job losses and broader economic strain.
Responding to the latest GDP figures, Trump said he needed “a little bit of time” and blamed the downturn on the “Biden economy.”
