McDonald’s fights declining sales by launching new menu, global expansions

International

MCDONALD’S, one of the world’s biggest fast food chains, had a bit of a rough start to 2025. The company recently shared its earnings report for the first three months of the year, and while profits were slightly better than expected, overall sales went down especially in the United States.

According to the first quarter report of 2025, McDonald's made a profit of $2.67 per share, just above what experts predicted, a report by CNN stated.

The CNN report added that McDonald’s total revenue dropped by 3%, and its net income fell by 3% compared to last year.

The main issue is fewer people in the US are eating out, especially during breakfast hours. Many customers, especially those with lower average incomes are cutting back on spending due to rising costs.

Sales at US McDonald's restaurants that have been open for at least a year went down by 3.6%, which is the biggest drop since 2020. People are being more careful with their money and eating at home more often.

Other fast food chains feel similar pressure as customers look for cheaper food options.

In places like the U.K and parts of Europe, sales also slipped a little. On the bright side, sales grew in countries like Japan and in the Middle East, where customers are still spending more.

To bring customers back, McDonald's are considering taking a few big steps in their food service by:

*Keeping the 5$ Meal Deal and focusing more on value menus.

*Launching new items like Chicken Strips and the Minecraft themed Happy Meal.

*Bringing back the Snack Wraps which had been discontinued since 2020.

*Opening new stores in 2,200 new locations outside the U.S.

"Consumers today are grappling with uncertainty, but they can always count on McDonald’s for both exciting new menu items and delicious favorites for exceptional value, from a brand they love,” said CEO Chris Kempczinski.

After the earnings report, McDonald's stock dropped slightly to $313.64, but it's still up over 8% since the beginning of the year.(John Clyron Matillano, CTU-TC Intern)