As Americans grow more fearful that sweeping tariffs could reheat inflation or even trigger a recession, the world's largest fast-food chain said it's noticing a broader hit to traffic.
McDonald's shares fell 1.2% on Thursday morning after the fast-food giant posted its biggest drop in US same-store sales since the height of the pandemic, as economic uncertainty continued to weigh on consumer spending. Comparable sales in the United States, the company's largest market, fell 3.6% in the first quarter ended March 31, well below analysts' expectations for a 0.98% decline.
McDonald's NYSE: MCD insiders are selling shares of this in 2025, but investors should do the opposite. The Insider selling is inconsequential despite its broad nature due to the company's use of share-based compensation and insider selling trends.
McDonald's (MCD) came out with quarterly earnings of $2.67 per share, beating the Zacks Consensus Estimate of $2.64 per share. This compares to earnings of $2.70 per share a year ago.
McDonald's (MCD) shares fell on Thursday after the fast-food giant's first-quarter revenue and comparable sales came up short of analysts' estimates.
The fast-food giant's patrons are “grappling with uncertainty” as spending slows at several restaurant chains.
McDonald's reports first-quarter earnings before the bell Thursday. Wall Street analysts expect earnings per share of $2.66 and revenue of $6.09 billion, according to LSEG.
MCD's first-quarter 2025 top line is likely to have been hurt by weak traffic, particularly in the U.S. and many large international markets.
Get a deeper insight into the potential performance of McDonald's (MCD) for the quarter ended March 2025 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
McDonald's remains a solid company with stable fundamentals, but its current price suggests modest long-term returns. Despite historical revenue slumps, McDonald's has grown free cash flow by controlling gross margins, crucial amid concerns about Trump's tariffs and rising costs. The company's strong balance sheet, supported by valuable real estate assets, ensures it can manage debt and weather economic headwinds effectively.
Realizing the success of Chick-fil-A and the chicken products of other fast food chains, McDonald's (NYSE: MCD) has created the first full menu item in nearly half a decade.