McDonald’s Reports Biggest Same-Store Sales Decline Since 2020

Restaurant chain McDonald’s (MCD) has reported mixed first-quarter financial results as its U.S. same-store sales posted their biggest domestic decline since the Covid-19 outbreak in 2020.

Chicago-based McDonald’s announced earnings per share (EPS) of $2.67 U.S., which was slightly ahead of the $2.66 U.S. expected on Wall Street.

However, revenue of $5.96 billion U.S. was short of the $6.09 billion U.S. that analysts had penciled in for the company. Sales were down 3% from a year earlier.

Management attributed the Q1 results to a 3.6% decline in U.S. same-store sales. The drop-off was blamed on a “more cautious consumer” within America.

The U.S. same-store sales decrease was the worst in McDonald’s home market since the 8.7% plunge it experienced in the second quarter of 2020 during lockdowns to slow the spread of Covid-19.

Analysts had forecast that the company would report a domestic U.S. same-store sales decline of 1.7% for the first quarter of 2025.

Across all its markets worldwide, McDonald’s same-store sales fell 1% during the quarter.

The company’s international developmental licensed markets division reported same-store sales growth of 3.5%, narrowly beating analyst estimates of 3.2%.

That segment includes key overseas markets such as Japan, China, and Brazil.

Management at McDonald’s had previously warned that U.S. President Donald Trump’s import tariffs are likely to heighten pricing concerns for American consumers.

At the same time, McDonald’s has said there is a risk of the company’s restaurants facing boycotts in foreign markets such as China due to a backlash against American brands.

Due to these issues, McDonald’s said that it plans to focus on value meals and cheaper menu items such as snack wraps to attract customers.

The company did not provide any forward guidance in its earnings release, though management might discuss it on their call with analysts, investors, and the media.

The stock of McDonald’s has risen 9% so far this year to trade at $319.65 U.S. per share