If more evidence was needed that U.S. consumers are anxious, it arrived Thursday morning. People are spending less money. Even at McDonald’s.
The restaurant chain reported that consumers curbed their visits in the first three months of the year. That meant a decline in sales for the fast-food giant.
Global same-store sales dipped slightly, by 1 percent, for the quarter ending March 30 compared with the same time last year. The dip was driven by a 3.6 percent decline in the United States.
Executives at McDonald’s said various economic pressures, including continued high inflation and interest rates, were not only affecting spending among lower-income consumers, but also some middle-income ones as well.
“People are just visiting less, and that speaks to, I think, the pressure on consumers, consumer sentiment,” Ian Borden, the chief financial officer of McDonald’s, told investors and analysts on an earnings call.
Global revenues for the chain, which include fees from franchisees, declined 3 percent from year-earlier levels to $6 billion in the quarter. Net income also declined 3 percent, to $1.9 billion.
In early trading, McDonald’s stock was down 1.2 percent, to $315.77.
The comments by McDonald’s executives echo those made by leaders at other food companies in recent days about consumer spending. Executives at several large, consumer-oriented companies have reported weaker sales in the first three months of the year. PepsiCo cut its full-year guidance outlook assuming that demand for its beverages and snacks will soften. Chipotle, the burrito giant, reported that its same-store sales fell for the first time since 2020 in the most recent quarter. Both companies attributed the results to customers’ feeling apprehensive about the economy.
Still, McDonald’s said it was starting to see some improvement already in the second quarter. In April, it offered a meal deal tied to the release of a movie based on the popular Minecraft game. That promotion appears to have brought in customers, and the company hopes to build on that success in May with a chicken strip offering as well as its continued focus on value meals.
“For the remainder of 2025 we’ll continue to include everyday value meal deals starting at $5, given how the current $5 meal deal in particular has resonated with customers,” McDonald’s chief executive, Chris Kempczinski, said on the call.
While McDonald’s is a closely watched barometer for consumer spending and sentiment, especially among lower-income Americans, it is also a well-recognized brand outside of the United States. International sales produce nearly 60 percent of its revenues.
Investors and Wall Street analysts have been closely monitoring consumer-oriented companies with a significant presence in international markets for any signs of anti-American sentiment related to President Trump’s policies, including tariffs.
In some international markets, there are growing negative feelings among some consumers, particularly in Northern Europe and Canada, toward America and American brands, Mr. Kempczinski told analysts, citing the results of a survey the company had done.
Mr. Kempczinski said the company’s survey revealed that consumers in various markets are “going to be cutting back their purchase of American brands, and we’ve seen an uptick in anti-American sentiment.” He added: “Call it eight- to a 10-point increase in anti-American sentiment.”
That growing anti-American attitude has not spilled over to the McDonald’s brand, he said, noting its international restaurants are largely operated by local franchisees, who “live and work and support the communities they do business in.”
McDonald’s said its international operated markets segment, which includes Canada and much of Europe, saw same-store sales decline by 1 percent from a year earlier. Last year, that segment grew 2.7 percent in the quarter. McDonald’s said the slide in sales was mostly driven by a drop in sales in Britain.
In other international markets, including China, Japan and the Middle East, McDonald’s reported a 3.5 percent rise from year-ago levels, largely because of improved sales in the Middle East and Japan, the company said.