McDonald’s Faces Largest U.S. Sales Decline Since the Pandemic: What This Means for the Fast Food Giant

McDonald’s is facing its largest drop in U.S. sales since the COVID-19 pandemic. Revenue from U.S. stores open for at least a year fell by 3.6% in early 2025 compared to the same period in 2024. Customer visits have decreased as many feel uncertain about the economy.

This decline is significant. It’s the steepest drop in sales since mid-2020 when pandemic restrictions were still impacting businesses. CEO Chris Kempczinski acknowledges this uncertainty but reassures investors that McDonald’s is capable of overcoming tough market conditions.

Amid rising prices, McDonald’s has been trying to win back customers, especially those from lower-income households. The timing of this drop coincides with a recession, with the U.S. economy contracting at an annual rate of 0.3% in the same period. This recession marks the first quarterly decline since 2022, a time when many were still adjusting to new economic realities.

Interestingly, while McDonald’s struggled, its sales outside the U.S. saw growth. Markets in Japan, Australia, and the Middle East performed better, helping to offset some of the losses. Kempczinski emphasized McDonald’s long history of adapting to changes, saying that the brand is rooted in providing "exceptional value" even during challenging times.

The decline in sales can be linked to broader factors affecting American businesses. Many operators are still feeling the effects of uncertainty sparked by former President Trump’s tariffs, which can raise costs for companies importing goods. Recently, tech giant Intel stated that rising costs could lead to a higher chance of recession due to these tariffs. In contrast, Adidas warned that prices for popular products like the Gazelle and Samba sneakers would increase in the U.S., directly attributing this to tariff policies.

Public sentiment reflects concern as well. On social media, customers have shared their frustration about rising prices. Many are looking for affordable options, which affects fast-food chains like McDonald’s. As people tighten their budgets, they are seeking value more than ever.

In this environment, it’s crucial for companies like McDonald’s to innovate and adapt. As Kempczinski puts it, the brand’s legacy of agility and leadership gives them confidence to navigate even the toughest markets. The challenge remains: can they maintain this promise while keeping prices accessible?

For more insights on the impact of economic changes on consumer behavior, check out recent analyses from reputable sources such as The Wall Street Journal or NPR.

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