McDonald’s has reported its steepest decline in U.S. same-store sales since the pandemic, as economic uncertainty and rising consumer anxiety — fueled by President Trump’s renewed trade war — take a toll on Americans’ appetite for fast food.
As reported by The Times UK, same-store sales in the U.S. fell by 3.6% in the first quarter of 2025, a sharp reversal that surprised Wall Street analysts and marked the worst quarterly performance for the fast-food giant since early 2020. Overall global sales were also down 1%, defying expectations of modest growth.
The company directly pointed to “toughest of market conditions,” with CEO Chris Kempczinski citing mounting geopolitical tensions and economic pressure weighing on consumer sentiment. “Geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected,” he told analysts.
President Trump’s tariffs on Chinese goods, part of a broader economic protectionist push, have sparked concerns about inflation and job losses — hitting lower-income Americans particularly hard. Ironically, Trump has long professed affection for the brand, once quipping to McDonald’s staff that he knew the menu better than they did. During last year’s campaign, he even worked a shift at a Philadelphia location.
Despite efforts to entice customers with value-driven promotions — like the $5 meal deal — McDonald’s struggled to offset a widespread pullback in spending. “Low-income consumer demand across the fast-food industry was down nearly double digits versus the prior year quarter,” Kempczinski said. Even middle-income groups have begun to cut back, he noted.
The disappointing results mirror broader signals from the restaurant industry, following similar warnings from Domino’s Pizza, Chipotle, and Starbucks about softer spending trends.
The economic picture isn’t much better outside the burger chain. The U.S. economy shrank in Q1 for the first time in three years, raising recession fears. Meanwhile, consumer confidence in April dropped to its lowest level in nearly five years — the longest decline streak since the 2008 financial crisis.
Overall, McDonald’s revenues fell 3% year-on-year to $5.96 billion, with net income down 3% to $1.87 billion. However, its international franchise segment saw better performance, growing 3.5% year-on-year, driven by a rebound in the Middle East and Japan.
Despite heightened global anti-American sentiment amid political tensions, the company stated there was no measurable damage to the McDonald’s brand abroad.
