McDonald's Suffers Biggest US Sales Hit Since Covid-19 Pandemic Began: Here's Why

Sales at McDonald's experienced their sharpest drop since the start of the COVID-19 pandemic, as companies struggle to navigate chaotic economic conditions in the US.

A sign for McDonald's.
Photo Credit: *Pixabay - Kelvin Stuttard*

A modern McDonald's restaurant in Franklin, NC.
Photo Credit: *Wikimedia Commons - Harrison Keely*

Chris Spiker

05/02/2025 1:23 p.m.

McDonald's sales in the US fell 3.6% in the first quarter of 2025, the company said in its earnings report on Thursday, May 1. The drop marks the fast food giant's steepest quarterly decline since the second quarter of 2020, when US sales plummeted by 8.7% as the pandemic forced restaurants worldwide to temporarily close.

The slump was more than double what economists expected and came as inflation, tariffs, and changing consumer habits hit the chain's low- and middle-income base hardest. Analysts polled by StreetAccount forecasted a 1.7% dip in domestic same-store sales, CNBC reported.

McDonald's executives said they hope to win back customers by focusing on value meals and the return of fan-favorite items like Snack Wraps.

"Consumers today are grappling with uncertainty, but they can always count on McDonald's for both exciting new menu items and delicious favorites for exceptional value, from a brand they love," said CEO Chris Kempczinski.

Global same-store sales slipped 1% in Q1, which wasn't a surprise after McDonald's chief financial officer Ian Borden warned about early-year sluggishness in February. Since then, President Donald Trump's sweeping tariffs have fueled more pricing pressure, especially for bargain hunters.

While high-income consumers are still spending, McDonald's executives said that's not enough to offset fewer visits from budget-strapped customers. Other restaurant chains like Chipotle, Domino's, Pizza Hut, Shake Shack, and Starbucks also had slower or declining Q1 sales.

McDonald's is also facing a global rise in anti-American sentiment. Internal surveys showed more diners in Canada and northern Europe are avoiding US brands, executives said on the company's earnings call.

The chain has tried splashy promotions to attract customers throughout 2025, including tie-ins with Minecraft and Pokémon. McDonald's even brought back Uncle O'Grimacey, the Irish cousin of beloved purple mascot Grimace, to promote Shamrock Shakes around St. Patrick's Day.

McDonald's said it has about 38,000 restaurants in more than 100 countries.

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