McDonalds suffers steepest US same-store sales drop since 2020: Heightened anxiety

McDonald’s suffered its steepest drop in US same-store sales since 2020 – with the burger giant citing “heightened anxiety” among customers as President Trump’s tariffs threaten to reheat inflation.US same-store sales plunged 3.6%, which the chain attributed to bad weather and an increasingly cautious consumer.It’s the worst such drop since the COVID-19 pandemic, when same-store sales plunged 8.7%.As Americans grow more fearful that sweeping tariffs could reheat inflation or even trigger a recession, the world’s largest fast-food chain said it’s noticing a broader hit to traffic.It’s no longer just low-income consumers pulling back on discretionary spending, but also middle-income consumers who are “weighed down by the cumulative impact of inflation and heightened anxiety,” CEO Chris Kempczinski said on Thursday during an earnings call.“We remain cautious about the overall health of the consumer,” he added.During its earnings call, McDonald’s said it plans to focus on its McValue menu offerings, and extend its $5 Meal Deal through the rest of 2025 as persistent inflation and high interest rates hammer consumer sentiment.The company is also adding new menu items in an attempt to win over customers, like bringing back fan-favorite Chicken Strips permanently, and partnering with “A Minecraft Movie” on a limited-edition meal.McDonald’s aims to boost profitability by adding new drinks to its menus, as well, inspired by its CosMc’s spin-off restaurants, which sell trendy flavored coffee and energy drinks.Analysts had expected a US same-store sales decline of 1.7% in the first quarter, according to StreetAccount.McDonald’s global same-store sales fell 1% in the same period.

The company said this drop was due to comparisons with last year’s longer Leap Day quarter.Not counting Leap Day, same-store sales would be flat, executives said.Shares in McDonald’s fell 1.3% to $315.42 in early Thursday trading.McDonald’s reported first-qu...