McDonald’s profits (MCD) Q1 2025

McDonald’s On Thursday, a mixed quarterly results were mentioned, as its sales in the American stores decreased for the second quarter in a row, as it published its largest local decline since the beginning of the Covid.

McDonald’s US sales in stores shrunk by 3.6 % as the series faced bad weather and a more cautious consumer. This decrease is the worst in the local McDonald’s market since it decreased by 8.7 % during the second quarter of 2020, when the states imposed locks to slow down the spread of Covid.

STRETACOUNT analysts expected the company to report that local store sales decreased by 1.7 % for the first quarter.

“In the United States, the traffic traffic (fast -service restaurants) decreased from the consumer group with approximately low -income consumer approximately against the previous quarter of the previous year,” CEO Chris Kimbesinski said in the company’s collective call. “Unlike a few months, the QSR traffic has decreased from almost average consumers, which is an indication that the economic pressure on traffic has been expanded.”

Executive officials said McDonald’s compared to its peers in the industry, McDonald’s has more Denzers with low and medium income. Although high -income consumers are still eating abroad, their spending is not sufficient to compensate for the movement shrinking traffic from other income groups.

The company said in all its markets, McDonald sales in the same store decreased by 1 % during this quarter, as it was subjected to comparisons for the day last year.

The shares of the company decreased by approximately 1.5 % in morning trading.

That’s what The company mentioned For the first quarter compared to what Wall Street expected, based on a survey of analysts by LSEG:

• Arrow’s profits: $ 2.67 rate for $ 2.66 expected
• profit: 5.96 billion dollars for $ 6.09 billion expected

The fast food giant told net income in the first quarter of 1.87 billion dollars, or $ 2.60 per share, a decrease of $ 1.93 billion, or $ 2.66 per share, a year ago.

Except for restructuring fees and other elements, McDonald’s received $ 2.67 per share.

Net sales decreased by 3 % to $ 5.96 billion.

In February, Finance Director Ian Borden said he expected the first quarter to be the low point of McDonald’s sales with the same stores, partly due to a weak start for this year in the United States since then, and President Donald Trump has presented a wide tariff, which has increased pricing fears for some consumers.

For its part, McDonald’s already said that she plans to roam in valuable meals and loud menu elements, such as the return of snacks, to return dinner to its restaurants this year.

One month after the second quarter, the strategy appears to be working. The new McCRISPY chicken strips are well sold even before the series begins to announce the menu element. In addition, tie meals with the Minecraft video game, which was timid for the Blockbuster movie, which was sold from holdings in almost two weeks, according to Kempczinski.

McDonald’s also plans to keep a $ 5 meal deal for the rest of 2025.

Outside the United States, McDonald’s has seen the same store sales the same 1 % in its international markets, which includes Australia and France. The sector includes the largest international markets in McDonald’s and represents nearly half of its revenues. Analysts had expected sales of the same stores in the sector for a quarter.

“In most of our main markets, we see a similar story regarding the difficult industry environment and relieving consumer morale,” Borden said in the company’s profit call.

The International Markets Licensing Markets Department of the company has reported the growth of store sales itself by 3.5 %, overcoming the estimates of analysts by 3.2 %. This part includes Japan, China and Brazil.

On Thursday, McDonald’s repeated its expectations throughout the whole year, including plans to open 2,200 sites and spending between 3 billion dollars and $ 3.2 billion on capital expenditures, the company said in a regulatory file. The company expects the net restaurant holes will enhance sales growth at the level of the system by a little more than 2 %.

Robert Home of CNBC contributed to this report.