Key Facts

• McDonald's saw a drop in sales of 3.6% in the first three months of 2025 compared to the same period in 2024.
• This is the biggest drop in sales for the company since June 2020, when pandemic restrictions were in place.
• According to CEO Chris Kempczinski, customers are dealing with uncertainty, but he believes the company can handle difficult market conditions.
• Despite facing backlash over increased prices, especially from lower-income households, McDonald’s is working to revive its business.
• The drop in sales coincides with a decrease in the US economy, which contracted at a yearly rate of 0.3% in the first three months of 2025.
• This drop in sales impacted McDonald's overall revenue, which went down by 1% despite growth in sales in Japan, Australia, and the Middle East.
• The US government's tariff policies (extra taxes on imported goods), under President Donald Trump, caused confusion and concern among many businesses, including McDonald’s.
• Other companies, like the tech giant Intel and sportswear brand Adidas, have warned that these tariff policies will lead to higher prices and a potential recession.