McDonald's posts biggest US sales drop since 2020
a year ago
- #Tariffs
- #US Economy
- #McDonald's
- McDonald's experienced its largest drop in US sales since the peak of Covid, attributed to economic concerns.
- US customer visits declined despite marketing efforts like the Minecraft movie tie-in and extended price deals.
- CEO Chris Kempczinski cited customer 'uncertainty' but expressed confidence in navigating tough market conditions.
- Same-store sales in the US fell 3.6%, the steepest decline since mid-2020 during pandemic restrictions.
- The sales drop coincided with a 0.3% contraction in the US economy, the first quarterly decline since 2022.
- President Trump blamed the 'Biden economy,' while analysts noted consumer nervousness over inflation and job security.
- McDonald's global like-for-like revenue dropped 1%, despite growth in Japan, Australia, and the Middle East.
- Trump's tariff announcements caused confusion, with firms like Intel and Adidas warning of higher costs and prices.
- DHL temporarily paused high-value deliveries due to trade policy changes before resuming after negotiations.
- Supporters argue tariffs will bring jobs to the US, but critics foresee short-term economic pain and job losses.