McDonald's reports largest revenue drop in US since pandemic as consumers pull back on spending

Sales shrank almost 4%, at 3.6%.

It's concerning when fast food and retail businesses start seeing contradicting sales from the US consumer. Especially staples that are concerned with affordability like Walmart and McDonalds. If Consumers are pulling back spending on "cheap", low cart value items like a McDonalds meal then it signals to me a budget constrained, worried consumer who won't spend.

The flip side of this that other fast food companies like Domino's have been doing fine. So maybe this is also a combination of McDonald's price hikes, lack of promotions and affordability, and increased competition. It could be both the macro and also the company specific issues that created this result.

[https://www.reuters.com/business/mcdonalds-global-sales-post-surprise-drop-tariff-chaos-hits-consumer-confidence-2025-05-01/](https://www.reuters.com/business/mcdonalds-global-sales-post-surprise-drop-tariff-chaos-hits-consumer-confidence-2025-05-01/)

[https://www.independent.co.uk/news/world/americas/mcdonalds-sales-drop-economy-recession-covid-pandemic-b2743029.html](https://www.independent.co.uk/news/world/americas/mcdonalds-sales-drop-economy-recession-covid-pandemic-b2743029.html)