McDonald’s Suffers Biggest Sales Drop Since COVID Lockdowns
McDonald’s has reported its steepest U.S. sales decline since the COVID-19 lockdowns, with a 3.6% drop in the first quarter of 2025.
This downturn reflects broader economic pressures, as inflation and recession fears prompt low- and middle-income consumers to cut back on dining out.
Breakfast hours, traditionally a strong segment for McDonald’s, have seen significant declines as more customers opt to eat at home.
Despite introducing a $5 value meal and other promotions, McDonald’s has struggled to attract budget-conscious diners. CEO Chris Kempczinski acknowledged that while the company is still perceived as a value leader, the gap has narrowed, necessitating swift action to restore its competitive edge.
The company’s global same-store sales also fell by 1%, marking the first worldwide decline in four years. Net income dropped 3% to $1.87 billion, and revenue decreased by 3% to $6 billion, missing Wall Street expectations.
In response, McDonald’s is ramping up efforts to offer affordable options and new menu items, including a Happy Meal tie-in with “A Minecraft Movie.” The company remains optimistic that these initiatives will help reverse the sales slump in the coming quarters.