From Yahoo Finance: 2025-05-01 07:13:00

McDonald’s store traffic dropped more than expected in Q1 due to economic uncertainty. U.S. same-store sales fell 3.6%, with lower- and middle-income consumers cutting back on fast food. Despite challenges, CEO believes McDonald’s can endure. Rivals like Yum Brands and Chipotle also reported weaker sales.

Globally, McDonald’s same-store sales fell 1% in Q1, missing Wall Street expectations. To combat this, the chain introduced a U.S. McValue menu and extended the $5 Meal Deal. While the $5 Meal Deal is successful, the McValue menu may need adjustments. CEO expects improvements after a tough Q1.

In response to weak sales, McDonald’s plans to introduce new offerings like chicken strips and the return of the snack wrap. Despite challenges, the company reaffirmed its full-year financial targets. Anti-American sentiment in some regions doesn’t seem to impact consumer perception of the brand. Shares were down 1% in morning trading.

McDonald’s Q1 revenue dropped 3% to $5.95 billion, missing analyst forecasts. Net income fell 3% to $1.86 billion, but adjusted earnings per share beat expectations by a penny. The company faces challenges, but remains optimistic about future improvements and offerings to drive traffic.

Read more: McDonald’s store traffic falls unexpectedly as diners grow uneasy about economy