McDonald’s Reports Decline in US Same-Store Sales, Marking the Largest Decrease in 5 Years

McDonald’s released quarterly results, and the numbers were disappointing. Same-store sales, which measure revenue for locations open at least a year, in the U.S. fell 3.6%. The chain tried to explain away the negative figure by blaming lower store traffic and hesitant consumers.

The most recent decline in same-store sales is the largest drop in nearly five years. By the end of the 2020 second quarter, McDonald’s saw a significant dip of 8.7% when COVID-19 lockdowns forced consumers to eat at home.

Analysts predicted that Q1 2025 for McDonald’s was going to be rough. First, U.S. sales started off weak in January for the fast-food giant. Then, as concern grew over potential and real price hikes on essential items, like groceries, consumers began tightening their wallets and dining out less. However, even with that in play, experts thought same-store sales would only fall 1.7% domestically.

Internationally, same-store sales for McDonald’s dropped 1% during the quarter. Nearly half of the fast-food chain’s revenue comes from outside the U.S.

“In most of our major markets, we’re seeing a similar story in regards to the challenging industry environment and softening consumer sentiment,” CFO Ian Borden said on the company’s earnings call, per CNBC.

McDonald’s Leaning on Value Meals and New Items

For the quarter, McDonald’s brought in total revenue of $5.96 billion, a 3% decline compared to the same period last year. Reported net income was $1.87 billion, a drop from $1.93 billion year over year.

Anticipating falling numbers, McDonald’s has been working to turn it around. Promoting value meals and bringing back previously popular menu choices, such as its snack wraps, seems to be the main strategy. The $5 meal deal will remain at least until the end of 2025.

Also potentially propping up the numbers is the introduction of new menu options and promotional tie-ins with entertainment. McDonald’s just launched McCrispy Strips, a chicken-centric meal that has become a permanent staple on the menu. Just in time for the release of the “Minecraft” movie, the fast-food chain also brought out several collectibles, which sold out in about two weeks.

“Consumers today are grappling with uncertainty, but they can always count on McDonald’s for both exciting new menu items and delicious favorites for exceptional value, from a brand they love,” said CEO Chris Kempczinski in the earnings report.