McDonald’s (MCD) reported first quarter earnings that missed Wall Street expectations on Thursday, as a drop in sales and traffic in the US weighed on results at the fast food giant.
McDonald’s reported first quarter revenue of $5.96 billion, which came in below the $6.12 billion expected, according to Bloomberg data. This marked a 3% decline from the prior year period.
Global comparable sales — or sales at restaurants in operation for more than one year — fell 1%, led by a 3.6% drop in US same-store sales as fewer customers visited McDonald’s in its home country. Wall Street analysts had, on average, expected global comparable sales to rise 0.5% and US sales to fall a more modest 1%.
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“During the first quarter, geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected,” said CEO Chris Kempczinski in a call with analysts following the results.
Kempczinski said traffic from low-income consumers fell “nearly double digits versus the prior quarter” and that from middle-income customers fell “nearly as much,” while visits from high-income consumers “remained solid.”
Adjusted earnings per share tallied $2.67 in the quarter, a penny below the $2.68 expected. McDonald’s stock was down as much as 1.2% early Thursday following the results.
The CEO said the divide illustrated “the divided US economy where low- and middle-income consumers are being particularly weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook.”
“Overall the results did not surprise us — we have been flagging the consumer weakness that disproportionately impacts the lower income consumers — McDonald’s core customer cohorts,” wrote Bernstein analyst Danilo Gargiulo following the report. Gargiulo holds a Market Perform rating on the stock.
President Trump’s trade policies have dragged down consumer sentiment, pushed inflation expectations to their highest levels since the 1980s, and raised fears of an impending recession. On Wednesday, data showed the US economy contracted for the first time in three years during the first three months of 2025.
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The challenging economic environment for consumers has weighed on McDonald’s and its fast food peers. In February, McDonald’s fourth quarter earnings missed Wall Street’s estimates.
On Thursday, the company reaffirmed its 2025 fiscal year financial targets.
