McDonald's restaurant traffic unexpectedly declined in the first quarter as economic uncertainty weighed on customers.
The burger giant's comparable-unit sales, or those at locations open at least a year, fell 1% globally in the January-March period.
Excluding the additional leap day in 2024, same-store sales remained flat, the company said.
Wall Street had forecast growth of nearly 2%, according to analysts surveyed by FactSet.
The situation was particularly critical in the United States, where comparable sales fell by 3.6%.
It was the biggest drop in McDonald's U.S. business since 2020, when the pandemic shuttered stores, restaurants and other public spaces across the country.
Weaker consumer confidence is hurting demand at McDonald's and other restaurant chains in the U.S.
Last week, rival Chipotle also reported weaker-than-expected first-quarter same-store sales.
Chipotle CEO Scott Boatwright said concerns about the economy were the “primary reason” for consumers' decline in dining out.
McDonald's responded by expanding its Value Menu in the U.S., which allows customers to buy one item for one dollar when purchasing a full-priced item.
The summer $5 Meal deal is also still running.
The deal was proposed last June and extended several times.
The Chicago-based chain's revenue fell 3% to $5.95bn (£4.46bn), below analysts' forecasts of $6.09bn (£4.56bn), according to FactSet.
Net profit fell 3% to $1.86bn (£1.39bn).
After accounting for restructuring and other one-time charges, the company earned $2.67 per share, beating Wall Street estimates by a penny.
McDonald's shares fell just over 1% in early trading Thursday.
Sourse: breakingnews.ie
