The CEO of McDonald’s U.S. claims that customers are becoming “more judicious” about their visits to the fast-food industry.
Wall Street Newspaper In the first quarter, the burger juggernaut reported a 3% decline in revenue. In the United States, same-store sales fell 3.6% from the previous year, which is the biggest loss since 2020.
McDonald’s CEO conference call For Investors
Chris Kempczinski, the CEO of McDonald’s, informed investors on a conference call on Thursday that the fast-food industry as a whole is going through a difficult time. “In many large markets, including the U.S., restaurant visits have declined more in the first quarter than industry executives were expecting,” he said.
According to Kempczinski, middle-class households and low-income consumers cut spending. However, he claimed that higher-income customers continued to visit, demonstrating the “divided U.S. economy.”
According to Kempczinski, “people are just being more judicious.”
During Thursday’s trading, McDonald’s shares fell 2%. Through Wednesday’s close, shares had risen 10% so far this year, outperforming a restaurant S&P subindex.
According to government economic data released this week, consumer spending has slowed, and several eateries have reported a decline in sales as patrons become more cautious about their financial situation.
Chipotle Mexican Grill’s business is slowing down after experiencing strong sales growth in the years following the COVID-19 pandemic. This week, Domino’s Pizza, Starbucks, Pizza Hut, and KFC announced that their U.S. operations have slowed in the first few months of 2025. Hispanic and lower-income consumers are cutting back on their spending, according to several firms.
The image isn’t entirely depressing. In an attempt to boost sales, brands are promoting bargains; Taco Bell and Chili’s have reported increases in customer traffic as a result of their initiatives. To enable businesses fully recover, however, economic indicators and consumer confidence must improve, according to Russell Weiner, CEO of Domino’s.
In an attempt to win back customers who were fed up with inflation, McDonald’s introduced new value alternatives as its sales slumped last year. Before an E. coli infection postponed the turnaround, indications of progress had started to appear.
According to Kempczinski, he anticipates that McDonald’s in the US would have a slow first quarter before traffic improves as it introduces new products.
Sales have increased in the current quarter due to a Happy Meal campaign linked to “A Minecraft Movie.” Customers are purchasing recently launched chicken strips, and the company intends to test additional drinks later this year that are modelled by its CosMc’s trial. Additionally, McDonald’s will keep serving its McValue menu, which starts at $5.
The business announced $6 billion in revenue for the most recent quarter on Thursday. Global same-store sales fell 1%, with gains in Japan and the Middle East offsetting drops in the United Kingdom.
Net income dropped to $1.87 billion, a 3% decrease. Analysts had predicted $2.66 in earnings per share, but $2.67 was achieved after one-time item adjustments.
Additionally, McDonald’s restated its goals for the year’s operating margins, capital expenditures, and the opening of new restaurants.
Read More :
Bombardier’s 2025 Revenue Projections
Harley-Davidson Sales Tariffs and economic jitters slow down
Daisy Morgan is a dedicated business journalist known for her insightful coverage of global economic trends and corporate developments. With a career rooted in a passion for understanding the intricacies of the business world, Daisy brings a unique perspective to her writing, combining in-depth research with a knack for uncovering compelling stories. Her articles offer readers a comprehensive view of market dynamics, entrepreneurship, and innovation, aiming to inform and inspire professionals and enthusiasts alike.
