McDonald’s restaurant signs are shown in in East Palestine, Ohio, Feb. 9, 2023. McDonald’s reports earning on Monday, July 29, 2024. (AP Photo/Gene J. Puskar, File)
McDonald’s store traffic fell further than expected in the first quarter as economic uncertainty weighed on diners.
The trouble was particularly acute in the U.S., where same-store sales — or sales at locations open at least a year — slumped 3.6%. That was the biggest U.S. decline McDonald’s has seen since 2020, when a pandemic shuttered stores and restaurants and other public spaces nationwide.
McDonald’s Chairman and CEO Chris Kempczinski said lower- and middle-income consumers, worried about inflation and the economic outlook, cut back on fast food during the January-March period.
Industrywide traffic from consumers making $45,000 per year or less was down by double-digit percentages, he said, and traffic from middle-income consumers was down nearly as much. Only traffic from those making $100,000 or more remained solid, he said.
“We believe McDonald’s can weather these difficult conditions better than most,” Kempczinski said Thursday in a conference call with investors. “However, we’re not immune to the volatility in the industry or the pressures that our consumers are facing.”
McDonald’s rivals have reported similar downturns. Yum Brands, which owns the Taco Bell, KFC, Habit Burger & Grill and Pizza Hut brands, said Wednesday that its U.S. same-store sales fell 2% in the first quarter. Chipotle also reported weaker-than-expected same-store sales in the first quarter.
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Via https://apnews.com/article/mcdonalds-first-quarter-results-dbfdc5ab9be9a36ea5a20026280e8cf9
The Most Revolutionary Act 
McDonalds is expensive!
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There has been reduced patronage in our (one single) McDonald’s (which we call Mackers) in New Plymouth. This preceded the tariffs that were enacted. New Zealand has been badly affected by the downturn in the global economy.
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I think all fast-food chains are becoming more expensive with tariffs, plus reciprocal tariffs. There are simpler and less expensive ways to find or prepare food. The tariff wars are shifting economies all around.
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I agree, Katherine. McDonald’s food isn’t very good for you, owing to its heavy use of sugar and vegetable oil. I have argued for years that fast food restaurant should sell rice and refried beans. That’s a very healthy combination, as the beans are usually friend in lard, which is much better for your health than vegetable oil.
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