McDonald's Corp (NYSE:MCD, ETR:MDO) 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.
It marked the second straight quarterly drop in US same-store sales and the worst performance since mid-2020.
Guest traffic in the US declined, and operating income fell 3% to $2.65 billion.
The company also missed Wall Street estimates on both revenue and profit. Total revenue declined 3% year-over-year to $5.96 billion, missing expectations of $6.13 billion. Adjusted earnings per share came in at $2.67, slightly below the $2.68 consensus.
“Consumers today are grappling with uncertainty, but they can always count on McDonald’s for value and innovation,” CEO Chris Kempczinski said in a statement. “Our legacy of agility positions us well for continued share gains.”
Global comparable sales were flat, with strength in markets like Japan and the Middle East offset by weakness in the US and UK.