McDonald’s store traffic falls unexpectedly as diners grow uneasy about economy

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