McDonald’s store traffic fell unexpectedly in the first quarter as economic uncertainty weighed on diners.
The burger giant’s same-store sales, or sales at locations open at least a year, fell 1% globally in the January-March period. Without the impact of the extra leap year day in 2024, same-store sales were flat, the company said. Wall Street had been expecting an increase of nearly 2%, according to analysts polled by FactSet.
The trouble was particularly acute in the U.S., where same-store sales slumped 3.6%. That was the biggest U.S. decline McDonald's has seen since 2020, when a pandemic shuttered stores and restaurants and other public spaces nationwide.
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WATCH HEREFlagging consumer confidence is hurting U.S. demand at McDonald’s and other restaurant chains. Last week, rival Chipotle also reported weaker-than-expected same-store sales in the first quarter. Chipotle CEO Scott Boatwright said concern about the economy was the “overwhelming reason” consumers dined out less often.
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SIGN UP McDonald’s has responded by expanding its U.S. value menu, which lets customers buy one item for $1 when they buy a full-priced item. It’s also offering its $5 Meal Deal through this summer. That deal was introduced last June and extended several times.
Revenue at the Chicago-based chain fell 3% to $5.95 billion, short of analysts’ forecast of $6.09 billion, according to FactSet.
Net income fell 3% to $1.86 billion. Adjusted for restructuring charges and other one-time items, the company earned $2.67 per share, beating Wall Street projections by a penny.
Shares of McDonald's Corp. fell just over 1% before the opening bell Thursday.
