McDonald's reports largest U.S. same-store sales decline since 2020
Key Points
McDonald's U.S. same-store sales shrank 3.6% during the first quarter as the chain faced bad weather and a more cautious consumer.
That drop is the worst in McDonald's home market since the 8.7% plunge during the second quarter of 2020.
McDonald's narrowly beat on earnings per share, but fell short on revenue.
McDonald's on Thursday reported mixed quarterly results as its U.S. same-store sales fell for the second straight quarter, posting their largest domestic decline since the onset of the Covid pandemic.
McDonald's U.S. same-store sales shrank 3.6% as the chain faced bad weather and a more cautious consumer. That drop is the worst in McDonald's home market since the 8.7% plunge during the second quarter of 2020, when states imposed lockdowns to slow the spread of Covid.
Analysts surveyed by StreetAccount were expecting the company to report domestic same-store sales declines of 1.7% for the first quarter.
Across all of its markets, McDonald's same-store sales fell 1% during the quarter, hurt by comparisons to last year's Leap Day, the company said.
McDonald's did not address the tough consumer environment in its press release Thursday but will likely comment on it during its conference call, which begins at 8:30 a.m. ET.
Shares of the company roughly 2% in premarket trading.
Here's what the company reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $2.67 adjusted vs. $2.66 expected
Revenue: $5.96 billion vs. $6.09 billion expected
The fast-food giant reported first-quarter net income of $1.87 billion, or $2.60 per share, down from $1.93 billion, or $2.66 per share, a year earlier.
Excluding restructuring charges and other items, McDonald's earned $2.67 per share.
Net sales dropped 3% to $5.96 billion.
Back in February, CFO Ian Borden said he expected the first quarter to be the low point for McDonald's same-store sales, in part due to a weak start to the year in the U.S. Since then, President Donald Trump has introduced broad tariffs, heightening pricing concerns for some consumers.
For its part, McDonald's has already said that it plans to lean into value meals and buzzy menu items, like the return of its snack wraps, to bring diners back to its restaurants this year.
Outside the U.S., McDonald's saw same-store sales fall 1% in its international operated markets, which include Australia and France. The segment includes McDonald's largest international markets and accounts for roughly half of its revenue. Analysts had projected flat same-store sales in the segment for the quarter.
The company's international developmental licensed markets division reported same-store sales growth of 3.5%, narrowly beating analyst estimates of 3.2%. That segment includes Japan, China and Brazil.
McDonald's on Thursday reiterated its full-year outlook, including plans to open 2,200 locations and to spend between $3 billion and $3.2 billion on capital expenditures, the company said in a regulatory filing. The company is projecting that net restaurant openings will boost its system-wide sales growth by slightly more than 2%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Idaho senators should protect school choice in ‘Big Beautiful Bill'
President Donald Trump's 'One Big Beautiful Bill' is now moving through the U.S. Senate, and conservative Christians are thrilled with many of the provisions that have been included so far. Although we don't yet know how the Senate version of the bill will shake out, it's worth noting that the version passed by the House late last month fulfills many of the pro-family policies made by the Trump administration. These include an expansion to the child tax credit for working families, tax benefits for adoptive parents and making permanent the Trump personal income and business tax cuts that fueled the above-average economic growth America experienced before the pandemic derailed international markets. However, one provision in particular that would improve educational access and outcomes for all students has flown under the radar so far. The provision would help more than one million students across the country access the educational support they need by creating special tax benefits for private donations to scholarship-granting organizations. It is modeled after the Educational Choice for Children Act, a federal proposal that has been introduced multiple times over the past several years and has earned the support of Sen. Jim Risch, R-Idaho, as well as other conservative stalwarts like Sen. Josh Hawley, R-Missouri, and Sen. Tim Scott, R-South Carolina. Scholarship-granting organizations already exist in many states, providing scholarships directly to students for tuition, tutoring, special needs services, education technology and curriculum materials. The provision offers both a supplement and alternative for students in states like Idaho, which has already begun moving down the road to more universal school choice programs by offering a new $5,000 refundable tax credit paid directly to the private school and homeschool families. Some parents — particularly within the homeschooling community — have voiced concerns that new school choice initiatives, such as Idaho's refundable tax credit, might jeopardize their educational freedom. After all, government money usually comes with strings attached. When you take the government cheese, you have to step into the regulatory mousetrap. And even if those restrictions aren't imposed right away, the door remains open for future state and federal mandates. Importantly, the ECCA provision in the One Big Beautiful Bill addresses these concerns by making sure no government funds go to the organizations, schools, or families involved — thereby avoiding another opportunity for government regulation. Instead, the ECCA establishes tax incentives for private donations to scholarship-granting organizations, which then award scholarships directly to students. Because this is private money — not government dollars — families can freely choose the best educational options for their children without government interference. All of this explains why the ECCA is supported by homeschool freedom advocates, including the Home School Legal Defense Association. In fact, the ECCA model helps ensure that parents remain in control of their children's education, consistent with biblical principles like Ephesians 6:4, which commands fathers to bring up their children in the discipline and instruction of the Lord. Not only would the ECCA provision in the 'One Big Beautiful Bill' help parents fulfill this biblical responsibility, but it would also expand educational opportunities for children currently stuck in failing public schools, no matter the state in which they live. Nationwide school choice which empowers parents while also protecting educational freedom is a high priority for Trump — and it should be just as high a priority for our legislative branch as they set education policy. With that in mind, we call on the U.S. Senate to keep the ECCA provision in whichever version of the 'One Big Beautiful Bill' they adopt. Our children — and their families — deserve it. Blaine Conzatti is the president of Idaho Family Policy Center.
Yahoo
38 minutes ago
- Yahoo
Trump loyalty is now part of job application
More than six million Americans are still looking for work, according to the latest data from the U.S. Bureau of Labor Statistics. Amid ongoing economic uncertainty, the federal government remains one of the country's most active employers, with open roles for nurses, actuaries, physicists, engineers and IT professionals listed at But prospective applicants may notice something different about the application process in 2025. Alongside typical questions about experience and qualifications, some federal job forms now ask about an applicant's alignment with presidential policy priorities, raising concerns about political screening in what are supposed to be nonpartisan civil service roles. Under guidance issued by the Chief Human Capital Officers Council (CHCOC), part of a broader federal hiring overhaul, applicants may be asked to explain how they would help implement specific executive orders or initiatives. One question currently being used reads: 'How would you help advance the President's Executive Orders and policy priorities in this role? Identify one or two relevant Executive Orders or policy initiatives that are significant to you, and explain how you would help implement them if hired.' This directive is connected to an executive order President Donald Trump that emphasizes 'merit-based' hiring over previous diversity, equity, and inclusion (DEI) considerations. The administration stated that these changes are intended to root out political bias and ensure a more ideologically aligned workforce. Critics argue that these practices resemble loyalty tests, particularly as questions of commitment to the Constitution and the President's policies appeared in job applications. Earlier this year, multiple government agencies experienced layoffs of employees who were seen as insufficiently aligned with current leadership, even in traditionally apolitical roles. Historical parallels have been raised. During the McCarthy era in the 1950s, public servants and private citizens alike were pressured to prove their loyalty to the U.S. government to root out suspected communists. Accusations and investigations often targeted personal beliefs rather than actions, leading to widespread firings, blacklisting and surveillance. Civil service roles in the U.S. were originally designed to serve the Constitution and the public, not individual officeholders. Federal employees take an oath to uphold the Constitution, a foundational distinction meant to separate American governance from monarchic or authoritarian systems. Whether the latest hiring guidelines are a temporary shift or a lasting transformation of the federal workforce remains to be seen. For now, job seekers interested in federal positions may want to prepare answers not just about their skills but about their stance on presidential policy.
Yahoo
38 minutes ago
- Yahoo
Trump's travel ban goes into effect on Monday. What's going to happen at MIA?
A Trump administration travel ban that severely restricts the entry of nationals from Haiti, Cuba, and Venezuela into the United States starts Monday, and it's yet unclear about how the policy will affect operations at Miami International Airport. There are still questions about who will be allowed into the U.S. under the ban — the State Department has said that travelers from the three affected nations will be able to keep their valid, current visas, but it's up to the Department of Homeland Security to decide whether to let people in at ports of entry. 'Confusion and frustration': Trump travel ban is unclear on who can visit the U.S. MIA is a major point of transit between the United States and Latin America and the Caribbean. It receives hundreds of flights from the region daily, including flights directly from Haiti and Cuba. On Friday, at least 14 commercial and charter flights were landing in Miami from Havana, according to flight information from the airport. A charter flight landed from Cap Haitien, a city on Haiti's northern coast. And while there are no direct flights between Venezuela and the U.S., many Venezuelans travel to Miami through third countries that offer non-stop flights to South Florida, including Colombia, Panama, Ecuador and Mexico and the Dominican Republic. The new Trump travel policy is raising questions about what will happen at the major hub on Monday, including as to whether border agents will turn around tourists and travelers when they arrive in Miami on Monday despite having valid visas. It's also unclear whether airlines have received any guidance on the matter. The Miami Herald reached out to several major airlines that service MIA. A Delta Air Lines spokesperson referred the Herald to U.S. Customs and Border Protection in response to questions about whether Haitians, Cubans, and Venezuelans on tourist and business visas will be allowed into the United States. President Donald Trump signed a proclamation Wednesday that 'fully restricts and limits the entry' of Haitian nationals and 'partially restricts and limits' the entry of Cuban and Venezuelan nationals, as well as citizens of over a dozen other countries. The travel ban is the latest federal government move targeting legal immigration from Cuba, Haiti and Venezuela, all large sources of immigration into the U.S.
