Fast food giant McDonald’s says economic uncertainty is denting sales.
Its sales in the US fell by 3.6% during the first quarter as customers reined in spending in the face of an unpredictable economic climate.
The company also reported a 1% drop in global sales in the first three months of the year.
McDonald’s chief executive, Chris Kempczinski, said the company was going through the “toughest of market conditions.”
Americans are cutting back on dining out
Other businesses in the hospitality sector such as Starbucks, Domino’s Pizza and Chipotle Mexican Grill have warned of declining consumer spend.
The US economy shrank by 0.3% between January and March 2025. It was growing at a rate of 2.4% in the final quarter of 2024. This is the first contraction since 2022.
Economists are saying the change was driven by an unprecedented surge in imports as both the public and companies brace for the impact of tariffs.
Trump calls for patience
Donald Trump called for patience and sought to blame his predecessor.
“This is Biden’s Stock Market, not Trump’s,” he posted on social media.
He added that the contraction “has nothing to do with tariffs, only he [Biden] left us with bad numbers, but when the boom begins, it will be like no other. Be patient.”
Some economists are saying any plunge in imports from April could mean GDP rebounds in the second quarter, averting recession for now.
