McDonald's suffers steepest US same-store sales drop since 2020: ‘Heightened anxiety'

Core Insights - McDonald's experienced a significant decline in US same-store sales, dropping 3.6%, attributed to consumer anxiety and adverse weather conditions, marking the steepest decline since 2020 [1][3][7] - The company is focusing on value offerings to attract cautious consumers amid rising inflation and interest rates [4][9] Sales Performance - US same-store sales fell 3.6%, the worst drop since the COVID-19 pandemic when sales fell 8.7% [1][7] - Global same-store sales decreased by 1%, with the decline attributed to comparisons with last year's Leap Day quarter [6][9] - International developmental licensed markets, including Japan, China, and Brazil, reported a same-store sales growth of 3.5%, exceeding expectations [10] Financial Results - McDonald's reported a first-quarter net income of $1.87 billion, or $2.60 per share, down from $1.93 billion, or $2.66 per share, the previous year [6] - Revenue decreased by 3% to $5.96 billion, missing analyst expectations of $6.09 billion [9] Strategic Initiatives - The company plans to extend its $5 Meal Deal through 2025 and introduce new menu items to attract customers [4][9] - McDonald's aims to enhance profitability by adding trendy drinks inspired by its CosMc's spin-off restaurants [5] - The company plans to open 2,200 new locations and invest between $3 billion and $3.2 billion in capital expenditures this year, expecting a 2% boost in system-wide sales growth [11]