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McDonald’s sees biggest U.S. sales slip since 2020

McDonald’s shared its latest financial results on Thursday, showing mixed performance. In the U.S., same-store sales dropped by 3.6%, the biggest fall since the COVID-19 lockdowns in 2020. This drop was larger than analysts expected, who had predicted a 1.7% decrease. The company blamed bad weather and lower spending by low- and middle-income customers. CEO Chris Kempczinski said these customers are eating out less, likely due to economic pressures.

Compared to its rivals, McDonald’s serves more low- and middle-income diners, making it more affected by this trend. Overall, global same-store sales were down 1%, partly because of a leap year in 2024 that boosted last year’s numbers.

In terms of revenue, McDonald’s reported $5.96 billion, slightly below expectations. Net income also fell to $1.87 billion from $1.93 billion a year earlier. However, new products like McCrispy Chicken Strips and a Minecraft promotion are performing well.

International markets saw varied results: Australia and France had a 1% drop in same-store sales, while markets like China and Brazil saw a 3.5% increase. McDonald’s still plans to open 2,200 new restaurants and invest over $3 billion in 2025.

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