McDonald's sales have been the largest in the U.S. since the pandemic five years ago, as Donald Trump's tariffs have severe uncertainty on consumer sentiment.
The world's largest burger chain said on Thursday that same-store sales in the quarter ended in March fell 3.6% in the year ended in March.
Restaurants are open for at least one year for sales after U.S. president’s taxes stun the market and raise concerns among Americans about their employment prospects.
According to Visible Alpha, analysts expect sales of approximately 14,000 U.S. restaurants at McDonald's will drop by 1.4%. The data marks a second consecutive quarter of our comparable sales, the largest sales since 8.7% since mid-2020.
McDonald's CEO Chris Kempczinski noted that "the consumers today are struggling with uncertainty".
Data follows U.S. quarterly sales in food and beverage venues Starbucks and Chipotle Mexican Grills. By comparison, Yum Brands’ Taco Bell US unit reported a 9% increase in same-store sales.
McDonald's shares violated weak stock markets' climbs by more than 10% this year as investors bet their cheap meals will attract customers during a period of economic downturn. The U.S. economy signed a contract of 0.3% in the first quarter, according to data released this week.
The Chicago-based company continues to expand promotions, such as the “$5 meal deal” launched last summer. It also launched limited-time offers such as the Big Mac combination, fries, drinks and collectible characters Minecraft this month.
Comparable sales worldwide fell 1% in the first quarter, with weaker countries including the UK being higher in markets including Japan and the Middle East. Except for the additional days for the 2024 LEAP year, this quarter will remain unchanged.
Revenue fell 3% to $5.96 billion, losing an estimate of $61.2 billion in a visible Alpha poll. Net income wasn't enough to meet expectations, with 3% dropping to $1.87 billion.