The burger giant, a much-watched barometer for consumer sentiment, reported lower consumer spending in the first quarter.
If more evidence was needed that U.S. consumers are anxious, it arrived Thursday morning. People are spending less money. Even at McDonald’s.
The restaurant chain reported that consumers curbed their visits in the first three months of the year. That meant a decline in sales for the fast-food giant.
Global same-store sales dipped slightly, by 1 percent, for the quarter ending March 30 compared with the same time last year. The dip was driven by a 3.6 percent decline in the United States.
Executives at McDonald’s said various economic pressures, including continued high inflation and interest rates, were not only affecting spending among lower-income consumers, but also some middle-income ones as well.
“People are just visiting less, and that speaks to, I think, the pressure on consumers, consumer sentiment,” Ian Borden, the chief financial officer of McDonald’s, told investors and analysts on an earnings call.
Global revenues for the chain, which include fees from franchisees, declined 3 percent from year-earlier levels to $6 billion in the quarter. Net income also declined 3 percent, to $1.9 billion.