US McDonalds sales slip as gas prices squeeze diners

U.S. same-store sales at McDonald's locations fell 0.2% during the July-September period, the company reported Wednesday. This marks the first decline in sales since early 2025 for the Chicago-based restaurant chain. While the drop was smaller than the 0.5% decrease Wall Street had anticipated, it signals a shift in consumer spending habits.

The decline coincides with rising gas prices and a higher cost of living that are straining household budgets. McDonald's responded by reinstating in-app deals and shifting its marketing strategy to emphasize value. These efforts helped push same-store sales back into positive territory by September. The company noted that the current economic climate is becoming increasingly difficult for U.S. fast food operators to manage.

Industry data from Revenue Management Solutions indicates that foot traffic across the entire U.S. fast food sector dropped 2.6% during the same quarter. Chris Kempczinski, Chairman and CEO of McDonald's, addressed the challenge during an investor presentation last month. He stated, “This is the environment that we’re in right now. You have to be on your game and deliver that value.” Kempczinski added that the pressure around cost of living is not expected to subside.

Internationally, the company saw different results. Global same-store sales rose 1.3% in the third quarter. Strong performance in Germany and Australia helped offset weakness in France, a market affected by protests that began in September. Despite the mixed sales figures, the company’s bottom line showed resilience.

Total revenue increased 1% to $7.16 billion for the quarter, a figure below the $7.28 billion expected by analysts. Net income grew 9% to $2.49 billion. After adjusting for one-time items, the company reported an earnings per share of $3.57. This result exceeded the analyst forecast of $3.38 per share.

The next scheduled update will follow the company's standard reporting calendar. Investors and analysts will watch for further details on how the chain plans to sustain its value-focused strategy in the coming months.