Fast Food Slump: U.S. McDonald's Traffic Drops 2.6%

McDonald's reported a decline in U.S. same-store sales for the third quarter, marking the first drop since the start of 2025. The company said sales at locations open at least a year fell 0.2% between July and September. This result beat Wall Street projections of a 0.5% dip but signaled continued pressure on the restaurant giant.

Customers cited higher gas prices and the general cost of living as primary reasons for reduced visits. To counter this, McDonald's restored in-app deals and shifted its marketing strategy toward value. These efforts helped push sales into positive territory in September, though the broader quarterly trend remained negative.

The slowdown was not isolated to the brand. Revenue Management Solutions, a restaurant industry consultant, reported that foot traffic across the entire U.S. fast food sector fell 2.6% during the same period. Chris Kempczinski, the company's Chairman and CEO, told investors last month that the current economic environment requires constant attention to value. He noted that the pressure around the cost of living is not going away.

Internationally, the company fared better. Global same-store sales rose 1.3% in the quarter. Strong performance in Germany and Australia offset weakness in France, where sales were impacted by protests that began in September. Total revenue for the quarter increased 1% to $7.16 billion, a figure that missed analyst expectations of $7.28 billion.

Profitability held firm despite the revenue miss. Net income rose 9% to $2.49 billion. After adjusting for one-time items, the company earned $3.57 per share, which exceeded the analyst forecast of $3.38. McDonald's shares rose more than 2% before the opening bell on Wednesday following the announcement.