McDonald’s has reported its steepest drop in U.S. sales since the height of the COVID-19 pandemic, blaming economic uncertainty and consumer hesitation as key factors behind the decline.
In the first three months of 2025, sales at McDonald’s U.S. locations open for at least a year fell by 3.6% — the largest like-for-like drop since the second quarter of 2020, when pandemic restrictions shuttered much of the food industry. The decline comes despite promotional efforts, including a tie-in with the upcoming Minecraft movie and extended value meal offers.
Chief executive Chris Kempczinski acknowledged the challenging environment. “Consumers today are grappling with uncertainty,” he said, but emphasized that McDonald’s is built to endure. “We have a 70-year legacy of innovation, leadership, and proven agility. We’re confident in our ability to navigate even the toughest of market conditions and gain market share.”
The sales slump coincides with a broader slowdown in the U.S. economy, which shrank at an annual rate of 0.3% during the same period — the first contraction since 2022. While President Donald Trump described the GDP figures as a holdover from the “Biden economy” and asked for “a little bit of time” to turn things around, many economists say the new tariff regime unveiled in early April is adding to the uncertainty.
Financial analyst Danni Hewson of AJ Bell explained that American consumers are growing cautious. “They’re nervous that prices will rise even higher and that already stretched household budgets will snap,” she said. “There’s also growing concern over job losses as businesses try to adapt to a volatile tariff environment.”
Although McDonald’s U.S. figures do not reflect the impact of Trump’s April 2 tariff announcements — dubbed “Liberation Day” by his administration — the report covers the first two months of his presidency. Those new trade policies have since shaken markets, with companies like Intel and Adidas warning of rising costs and potential price hikes. DHL temporarily paused deliveries over $800 due to customs confusion, only resuming them after negotiating adjustments.
Globally, McDonald’s also saw a slight dip. Its worldwide same-store sales declined 1% in the first quarter, dragged down by the U.S. drop, despite growth in markets like Japan, Australia, and the Middle East.
While McDonald’s remains a household name with strong brand loyalty, the recent figures highlight how economic turbulence and policy shifts are weighing heavily on consumer behavior — and even the Golden Arches aren’t immune.