Kathrine Frich
McDonald’s is one of the most recognizable brands on the planet, serving nearly 70 million customers a day across more than 100 countries.
McDonald’s is one of the most recognizable brands on the planet, serving nearly 70 million customers a day across more than 100 countries.
From breakfast in Boston to Big Macs in Bangkok, the Golden Arches are a symbol of American fast food culture worldwide.
But even this global giant isn’t immune to economic turbulence. McDonald’s has just reported its sharpest quarterly sales decline in the U.S. since the early pandemic. and now it’s warning of growing anti-American sentiment abroad, putting further pressure on its international reputation and revenue.
U.S. Sales See Steepest Decline Since 2020
In its latest earnings report, McDonald’s revealed U.S. same-store sales fell 3.6% in the last quarter, the biggest drop since Q2 2020, when sales plunged 8.7%.
The figure was far worse than the projected 1.7% decline, signaling deeper trouble for consumer-focused brands.
Middle and Low-Income Consumers Are Pulling Back
Executives pointed to sharp declines in visits from both low- and middle-income customers.
Foot traffic from middle-income diners dropped by nearly double digits, and many consumers are cutting back even further by skipping meals like breakfast or eating at home.
Wealthier customers, however, continued to dine out as usual underscoring the growing economic divide.
McDonald’s Isn’t Alone
The Golden Arches joins a growing list of chains reporting sluggish sales:
Chipotle, Domino’s, Pizza Hut, Shake Shack, and Starbucks all noted softer consumer demand in recent quarters, particularly among lower-income patrons.
This suggests a broader trend of belt-tightening across the food and beverage industry.
Anti-American Sentiment on the Rise
In addition to domestic challenges, McDonald’s executives flagged a troubling development overseas: rising anti-American sentiment, especially in Northern Europe and Canada.
Internal surveys show a growing number of consumers saying they plan to reduce purchases of American brands.
A trend McDonald’s is watching closely, though its global brand perception remains intact for now.
Revenue Misses Forecasts Again
This marks the third time in four quarters that McDonald’s revenue has fallen short of Wall Street expectations.
Despite strong brand recognition and a broad global presence, the company is feeling the weight of a volatile economy and shifting consumer behavior.
Expansion Plans and Promotional Wins
Despite the challenges, McDonald’s is sticking to its full-year outlook.
It still plans to open 2,200 new locations and expects sales growth of just over 2%.
A tie-in with the upcoming “Minecraft Movie” has performed well, and refreshed value offerings have helped the brand stay competitive.
Investors Grow Wary as Sentiment Dims
McDonald’s shares dropped nearly 2% following the report.
While the company remains confident in its long-term strategy, executives said they remain “cautious about consumer sentiment”. a reflection of an uncertain economic climate that continues to evolve.