McDonald’s U.S. first quarter 2025 traffic from low-income consumers declined by almost double-digits, and middle-income consumer traffic fell by nearly as much, CEO Chris Kempczinski said in a Thursday earnings call.
Traffic growth from high-income consumers “remains solid, illustrating the divided U.S. economy where low- and middle-income consumers, in particular, are being weighted down by the cumulative impact of inflation and heightened anxiety about the economic outlook,” Kempczinski said.
McDonald’s same-store sales were down in the U.S. by 3.6% in the first quarter, illustrating challenges across the QSR industry. Several other major brands posted negative same-store sales declines last quarter, including Pizza Hut, KFC, Starbucks and Chipotle, which broke its years-long sales growth streak.
McDonald’s will focus on its overall value offering, new menu items like its forthcoming chicken strips, and expanding its beverage category to help drive traffic going forward. Placer.ai’s data revealed McDonald’s overall foot traffic was down 2.6% compared to Q1 2024, when its foot traffic increased by 0.1%.
But the tough quarter did surprise management. Kempczinski said during the first quarter McDonald’s focused on launching the McValue platform and making consumers aware of it.
“Q1 for us was always going to be the toughest quarter of the year, and then we were expecting to see momentum build as the year progressed,” he said.
But the Golden Arches’ sales challenges may not have altered its market advantages. The chain said it managed to outperform its competitors in terms of guest count, thanks in part to the launch of its McValue platform launch, Ian Borden, McDonald’s CFO said during the call.
“While we may adjust our current value offerings over time, for the remainder of 2025 we'll continue to include everyday Value Meal deals starting at $5, given how the current $5 meal deal — in particular — has resonated with customers,” Borden said.
Customer satisfaction scores were also at an all-time high in the U.S., Borden added.
McDonald's U.S. same-store sales
The second quarter started off with a spike in traffic following McDonald’s Minecraft Movie promotion, which included meals with Minecraft-themed collectables, according to Placer.ai. That echoed the success of its limited-time Adult Happy Meals, which also led to a spike in traffic.
Kempczinski said the promotion was meant to last four weeks and that the “response exceeded what we were planning for.” Supplies of the collectibles, which were supposed to last four weeks, sold out in less than two weeks.
These recent gains have given franchisees a new sense of optimism, according to a BTIG report emailed to Restaurant Dive.
“Franchisees cited an immediate gain on the first day and particular strength at dinner and with families,” Peter Saleh, BTIG managing director and restaurant analyst, said in the report.
Franchisees also were optimistic about the upcoming May 5 launch of chicken strips – the first permanent item added to McDonald’s U.S. menu in four years. The chain has already started to soft sell its McCrispy Strips in some restaurants, but advertising hasn’t begun yet. Among the restaurants selling the strips, there has been “a nice take rate,” Kempczinski said. The McCrispy platform, of which the strips are the first new entry, will allow McDonald’s to reintroduce some menu items with an updated core protein.
“We think we can get a halo benefit that’s associated with that,” Kempczinski said. “Strips is going to allow us to reintroduce Snack Wraps, which is going to be coming later in the year.”
