McDonald's announced that its store sales in the United States decreased by 3.6% year-on-year in the first quarter of this year. This marks the largest decline since the 8.7% drop recorded during the COVID-19 pandemic in 2020, with President Donald Trump's tariff policy and the resulting consumer sentiment recession cited as the main causes.
On the 1st (local time), according to BBC and others, McDonald's stated that its total sales for this first quarter were $5.96 billion (approximately 8.4566 trillion won), down 3% compared to the same period last year. This level is below the market forecast of $6.12 billion. Net income also decreased by 3% to $1.87 billion, falling short of expectations. McDonald's currently operates about 14,000 stores in the United States.
With this, McDonald's has reported its worst performance since the COVID-19 pandemic, as sales in the United States fell for two consecutive quarters. Chris Kempczinski, CEO of McDonald's, noted, "Consumers are reducing their expenditures in an increasingly uncertain situation," and explained that the recently announced tariff measures and concerns about a recession have rapidly dampened consumer sentiment. Immediately after the earnings announcement, McDonald's stock fell by about 1%, reflecting market disappointment.
Previously, McDonald's had implemented various marketing strategies to increase consumer traffic. It extended the '5-dollar set' discount event, introduced last summer, and launched limited-time menu items in connection with the recently released Hollywood adventure film 'Minecraft Movie,' among other differentiation strategies. However, this performance suggests that such strategies have not generated significant results.
McDonald's reports that following President Trump's announcement of mutual tariff policies in April, consumer anxiety surged, significantly impacting late-quarter sales in the first quarter. CEO Kempczinski stated, "Some consumers are now opting to have breakfast at home or skipping it altogether," adding, "This change is leading to a decrease in visits to fast-food outlets."
It is also evident that consumer spending has declined based on income levels. The visit rate of low-income consumers to McDonald's decreased by about 10% compared to the same period last year, while the middle-class visit rate showed a similar decline. Kempczinski noted that this trend is spreading across major dining brands such as Starbucks, KFC, and Pizza Hut. In contrast, Taco Bell, which emphasized low-priced menus, recorded a 9% increase in sales during the same period, demonstrating exceptional performance.
McDonald's is also showing poor performance in the global market. Total overseas sales decreased by 1%, and despite recoveries in some markets such as Japan and the Middle East, weakness in the European market, including the United Kingdom, offset these gains. In the Middle East, sales were suppressed until recently due to the spread of anti-American sentiment related to the Gaza Strip war and boycotts of American brands, but there has been a recent recovery.
CEO Kempczinski also revealed the results of a global consumer survey on this day. According to the survey, the reputation of the McDonald's brand itself has not changed significantly, but the willingness to purchase from American brands overall has decreased. Notably, anti-American sentiment has increased by 8 to 10 percentage points in Northern Europe and Canada.