The Blubber

McDonald’s saw a noticeable dip in U.S. sales at the start of 2025, a decline the company linked to growing consumer unease about the American economy.

Even with promotional tie-ins like its partnership with the upcoming Minecraft movie and extended discount offerings, foot traffic at U.S. locations dropped during the first quarter compared to the same period last year.

CEO Chris Kempczinski acknowledged the broader anxiety, saying customers are “grappling with uncertainty,” though he reassured shareholders that the company is well-equipped to weather economic headwinds.

The fast-food giant has been trying to win back consumers, especially those in lower-income brackets, after facing backlash over price hikes. Yet same-store sales in the U.S. fell 3.6% during the first three months of 2025 — the sharpest decline since the height of COVID lockdowns in mid-2020.

The drop came amid signs of broader economic strain, with U.S. GDP contracting by 0.3% on an annualized basis in Q1 — the first quarterly economic downturn since 2022.

In response to the weaker growth, President Trump urged patience, blaming the disappointing figures on what he termed the lingering effects of the “Biden economy.”

Market analysts suggest that many Americans are tightening their belts. Danni Hewson, head of financial analysis at AJ Bell, said shoppers are pulling back on non-essential spending, anxious about further price hikes and the possibility of job losses as companies face an uncertain tariff environment.

The quarterly sales data reflects consumer behavior during the first two months of Trump’s presidency, ending just ahead of his sweeping tariff announcements on April 2, which he dubbed “Liberation Day.” That move caused further confusion among businesses and consumers alike.

Despite the headwinds, Kempczinski struck a confident tone: “Consumers today are grappling with uncertainty, but they can always count on McDonald’s to deliver value. Our 70-year track record of innovation, leadership, and adaptability gives us confidence in our ability to grow, even in challenging times.”

Globally, McDonald’s same-store sales slipped 1% during the quarter, as the decline in the U.S. offset gains in markets like Japan, Australia, and the Middle East.