McDonald’s Records Unexpected Decline in Global Sales Amid Economic Pressures and Falling Consumer Confidence
McDonald’s has reported an unexpected drop in its global sales during the first quarter of the year, compared to the same period last year. The decline comes as consumer demand weakens in major markets such as the United States and Europe due to mounting economic pressures and uncertainty stemming from volatile trade policies.
Chris Kempczinski, CEO of the world’s largest fast-food chain, described the current environment as “the toughest market conditions ever,” noting a significant decrease in visits from low- and middle-income customers compared to the previous year.
The results align with similar warnings from companies like Domino’s Pizza and Starbucks, which have also reported reduced consumer spending on dining out. Rising inflation and pessimism over economic forecasts continue to weigh heavily on consumer confidence.
McDonald’s is also facing additional strain from the tariffs imposed by former U.S. President Donald Trump’s administration, which have contributed to higher costs and disrupted supply chains—exacerbating financial burdens on both consumers and businesses.
In a troubling sign for the U.S. economy, recent data showed a contraction in the first quarter—the first in three years—raising fears of a possible recession in 2025.
Sky Canaves, an analyst at eMarketer, stated, “Lower-income consumers are the most vulnerable to inflation, and dining out is one of the first areas where they cut back spending.”
Despite promotional campaigns and discounted meal offers, McDonald’s global sales dropped by 1% year-over-year, defying analyst expectations of a 0.95% increase.
In the U.S., the company’s largest market, sales declined by 3.6%—the sharpest fall since the COVID-19 pandemic in 2020.
Data also showed a decline in demand across the Middle East amid widespread calls to boycott Western fast-food chains, following accusations of their support for Israel in its ongoing war on Gaza.
McDonald’s stock fell by 2% in early trading, despite having gained nearly 10% since the beginning of the year.
