McDonald's Faces Revenue Decline in Q1 2025

McDonald's Corporation reported a 3% annual decrease in revenue for the first quarter of fiscal 2025, totaling $5.9 billion. This figure fell short of market expectations, signaling potential challenges ahead for the fast-food giant.

Financial Performance Highlights

From January to March, McDonald's saw a 3% drop in net income to $1.87 billion, with diluted earnings per share also declining by 2% to $2.60. Operating income similarly decreased by 3%, reaching $2.64 billion.

Leadership's Perspective on Market Conditions

CEO Chris Kempczinski emphasized McDonald's resilience and innovation over its 70-year history. "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," he stated.

Following the announcement, McDonald's shares experienced a 3.02% decline in premarket trading, reflecting investor reactions to the quarterly performance.