Even discounted combo meals aren’t convincing cautious customers to open their wallets. The fast-food giant reported disappointing first-quarter earnings Thursday, with global sales at established locations falling 1% compared to the same period last year.
The downturn was led by a concerning 3.6% sales slump in U.S. stores – a stark reversal from last year’s 2.5% growth. Overall revenue decreased 3% to 6billion,whilenetprofitssimilarlyfell36billion,whilenetprofitssimilarlyfell31.9 billion.
As a bellwether for working-class spending habits, McDonald’s struggles signal broader economic unease. “Today’s customers face considerable financial pressures,” acknowledged CEO Chris Kempczinski, though he expressed confidence in the chain’s resilience during challenging times.
The earnings report arrives as analysts scrutinize multinational corporations for potential backlash against U.S. foreign policy. While sales dipped 1% in established international markets like Canada and Europe (compared to 2.7% growth last year), the chain saw 3.5% growth in developing markets including Japan and the Middle East.
Britain’s struggling economy contributed significantly to the international decline, while Middle Eastern and Japanese locations helped offset losses elsewhere. The mixed results highlight how global economic turbulence and local market conditions continue reshaping consumer behavior worldwide.