McDonald’s has reported its steepest quarterly sales decline in the United States since the peak of the pandemic in 2020, reflecting ongoing challenges in the economic environment. The fast-food giant announced that U.S. same-store sales dropped by 3.6%, marking the largest three-month decline since Q2 2020 when sales plummeted by 8.7%. Analysts had anticipated a decline of only 1.7%. According to McDonald’s Chairman and CEO Chris Kempczinski, consumers are currently dealing with significant uncertainty. The company noted a notable decrease in customer visits, particularly among middle-income diners, with traffic falling by nearly double digits. Additionally, low-income customers continue to reduce their visits. For instance, more people are reportedly skipping breakfast or opting for meals at home to cut costs. However, high-income customer traffic remained steady. This trend mirrors broader economic patterns where less-affluent consumers prioritize essential spending while wealthier individuals maintain their spending habits. McDonald’s joins other restaurant chains such as Chipotle, Domino’s, Pizza Hut, Shake Shack, and Starbucks in reporting weak financial results due to reduced discretionary spending. The company also missed revenue forecasts for the third time in four quarters. Internationally, McDonald’s executives acknowledged an increase in anti-American sentiment, particularly in northern Europe and Canada, based on internal surveys. Despite these challenges, McDonald’s maintained its full-year financial outlook, citing plans to open 2,200 new locations and promotional efforts like its tie-in with the “Minecraft Movie.” Officials expressed cautious optimism regarding consumer sentiment. Shares fell by 1.6% in early trading.
— new from NBC News
