McDonald’s sharp 3.6% drop in U.S. same-store sales marks a significant signal of consumer strain and economic uncertainty, particularly among lower-income households, who have long been the chain’s core customer base. This is its worst quarterly performance in the U.S. since Q2 2020, at the peak of pandemic lockdowns—highlighting that the fast-food giant, often seen as “recession-resistant,” is not immune to shifting economic tides.
The contraction in U.S. GDP (-0.3% annualized) and the confusion surrounding President Trump’s new tariff policies seem to be compounding the pressure. As inflation remains a concern and tariffs drive up costs, both consumers and companies are pulling back. McDonald’s, despite its global resilience—with growth in Japan, Australia, and the Middle East—is feeling the domestic pinch as customers cut discretionary spending or shift to lower-cost alternatives.
While CEO Chris Kempczinski is leaning into McDonald’s long history of value and adaptability, public frustration with price hikes is a clear reputational risk. The brand’s long-standing value proposition is under threat, and this could erode loyalty if affordability continues to slip.
Other companies like Intel, Adidas, and DHL are also reacting cautiously or critically to the Trump administration’s trade agenda, reinforcing the perception of growing economic turbulence in early 2025.