McDonald's reported a 3.6% decline in U.S. comparable sales in Q1 2025, marking its largest drop since 2020's pandemic impact. The fast-food giant's revenues fell short of expectations at $5.96 billion, with CEO Chris Kempczinski acknowledging the ongoing consumer uncertainty. Global sales also dipped by 1%, particularly struggling in the U.K. In response, McDonald's is emphasizing value meals and has rolled out several promotional deals to attract cost-conscious customers amid inflationary pressures and rising menu prices. Despite the challenges, McDonald's shares have seen a 7.71% year-to-date increase.
U.S. comparable sales decreased by 3.6% from the previous year, driven by reduced guest counts amid economic uncertainty impacting consumer spending.
CEO Chris Kempczinski remarked, 'Consumers today are grappling with uncertainty,' reflecting the pressures faced by the industry and its customers.
The earnings report revealed a drop in U.S. store revenue to $5.96 billion, lower than the expected $6.12 billion, triggering a 1.53% drop in share prices.
McDonald's has introduced new menu items and value-focused deals like the McValue menu to address customer concerns over rising prices due to inflation.
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