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Home » In an Uncertain Economy, McDonald’s Sees Spending Decline

In an Uncertain Economy, McDonald’s Sees Spending Decline

May 1, 20252 Mins Read Business
In an Uncertain Economy, McDonald’s Sees Spending Decline
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Even value meals aren’t enough to get anxious consumers to spend. Despite efforts to entice customers to its restaurants, McDonald’s saw its sales slip in the first three months of the year.

Global same-store sales dipped 1 percent for the quarter ending March 30, driven by a 3.6 percent decline in the United States, McDonald’s reported early Thursday. That’s a big change from a year ago, when U.S. same-store sales rose 2.5 percent.

The restaurant giant said revenue fell 3 percent to $6 billion in the quarter. Net income also declined 3 percent to $1.9 billion.

McDonald’s is a closely watched barometer for consumer spending and sentiment, especially among lower-income consumers, and the company’s financial results pointed to jittery customers.

“Consumers today are grappling with uncertainty,” McDonald’s chief executive, Chris Kempczinski, said in a news release, adding that he believed McDonald’s had the ability to navigate “even the toughest of market conditions and gain market share.”

Investors and Wall Street analysts have also been closely monitoring consumer-oriented companies with a significant presence in international markets for any signs of anti-American sentiment amid some of President Trump’s policies, including tariffs.

McDonald’s, which is one of the most recognized American brands, said its international operated markets segment, which includes Canada and much of Europe, saw same-store sales decline by 1 percent from a year earlier. Last year, that segment grew 2.7 percent in the quarter. McDonald’s said the slide in sales was mostly driven by negative sales in Britain.

In other international markets, including China, Japan and the Middle East, McDonald’s reported a 3.5 percent rise from year-ago levels, largely because of improved sales in the Middle East and Japan, the company said.

Company Reports Consumer Behavior Fast Food Industry McDonald's Corporation
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