McDonald’s just had its worst quarter since Covid. It said customers are getting nervous

CNN - May 1st, 2025

McDonald’s has reported a decline in sales for the second consecutive quarter, with a 3.6% drop in same-store sales in the United States, its largest market. This marks the worst decline since 2020, during the height of the Covid pandemic. The net income for the first quarter was $1.87 billion, a slight decrease from the previous year. Despite these challenges, McDonald’s CEO Chris Kempczinski remains optimistic about the company's ability to navigate difficult market conditions. The company’s recent efforts to boost sales, such as the revamped value menu, have not met expectations, although a promotional partnership with 'A Minecraft Movie' has seen some success in increasing restaurant visits.

The broader economic environment is reflecting a similar trend across other major fast-food chains such as Chipotle, Yum! Brands, Domino’s Pizza, and Starbucks, all of which have reported lackluster earnings amidst a backdrop of waning consumer confidence. In response, McDonald's is shifting its focus to new product launches, including the return of chicken strips and the fan-favorite chicken 'Snack Wrap.' These moves are part of a strategy to re-engage budget-conscious consumers and recapture market share. Meanwhile, the company's shares saw a nearly 2% drop in early trading, reflecting investor concerns over the current economic landscape and the company’s performance.

Domino's Pizza Starbucks Mc Donald's Fast Food Industry Chipotle Economic Uncertainty Sales Decline Minecraft Movie Chris Kempczinski Yum! Brands Chicken Strips Snack Wrap

Story submitted by Fairstory

RATING

6.0

Moderately Fair

Read with skepticism

The article provides a timely and generally accurate overview of McDonald's financial performance for the first quarter of 2025. It effectively highlights the challenges faced by the company in an uncertain economic environment, while also mentioning strategic initiatives aimed at improving sales. However, the lack of explicit source attribution and detailed analysis of industry trends limits the story's depth and transparency. The article is clear and accessible, making it suitable for a broad audience interested in business news, but it could benefit from more comprehensive sourcing and balanced perspectives to enhance its reliability and engagement potential.

Accuracy

The story accurately reports McDonald's sales decline and the drop in U.S. same-store sales, which aligns with the company's financial disclosures. However, the claim about the worst drop since 2020 is not fully substantiated without additional context. The net income figures require further verification, as the story does not provide a direct source for these numbers. The mention of Leap Day impacting sales is corroborated by McDonald's own statements, adding credibility to this claim. The story's accuracy is generally strong, but some specifics, such as the exact comparison with previous years and other companies' earnings, need more precise verification.

Balance

The article provides a balanced view by presenting McDonald's challenges alongside its strategic initiatives, such as the new menu items and promotions. However, it predominantly focuses on the negative aspects of McDonald's performance, such as declining sales and stock price, without equally highlighting any positive trends or successes. Additionally, while it mentions similar struggles faced by other companies, it does not delve into their strategies or outcomes, which could provide a more comprehensive industry perspective.

Clarity

The article is generally clear and well-structured, presenting information in a logical order that aids reader understanding. The language is straightforward, and the tone remains neutral, focusing on factual reporting without unnecessary embellishments. The clarity of the narrative helps in comprehending the key points about McDonald's financial performance and strategic initiatives, despite the lack of detailed sourcing.

Source quality

The article does not clearly attribute its information to specific sources, such as direct quotes from McDonald's financial reports or statements from industry analysts. The lack of explicit sourcing reduces the reliability of the information presented. While it references McDonald's CEO and industry comparisons, the absence of direct citations from credible sources like financial reports or expert commentary limits the assessment of source quality.

Transparency

The article lacks transparency regarding its sources and methodologies. It does not disclose where the financial data or CEO statements are derived from, nor does it explain the basis for comparisons with other companies. The absence of explicit source attribution and context about the economic environment reduces the article's transparency, making it difficult for readers to assess the validity of the claims independently.