McDonald’s store traffic falls unexpectedly as diners grow uneasy about economy
The trouble was particularly acute in the US, where same-store sales slumped 3.6%.
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 US, where same-store sales slumped 3.6%.
That was the biggest US decline McDonald’s has seen since 2020, when a pandemic shuttered stores and restaurants and other public spaces nationwide.
Flagging consumer confidence is hurting US 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 chief executive Scott Boatwright said concern about the economy was the “overwhelming reason” consumers dined out less often.
McDonald’s has responded by expanding its US value menu, which lets customers buy one item for one dollar when they buy a full-priced item.
It is also offering its five-dollar Meal Deal through this summer.
That deal was introduced last June and extended several times.
Revenue at the Chicago chain fell 3% to 5.95 billion dollars (£4.46 billion), short of analysts’ forecast of 6.09 billion dollars (£4.56 billion), according to FactSet.
Net income fell 3% to 1.86 billion dollars (£1.39 billion).
Adjusted for restructuring charges and other one-time items, the company earned 2.67 dollars per share, beating Wall Street projections by a penny.
Shares of McDonald’s Corporation fell just over 1% before the opening bell on Thursday.
