McDonald`s Corp

Q1 Performance and Sales Decline: McDonald's reported a global comp sales decline of 1% for Q1 2025, with a significant 3.6% drop in the U.S. market, driven by challenges particularly affecting lower and middle-income consumers. This reflects broader industry pressures and a decline in overall QSR traffic, especially from these income brackets, raising concerns about consumer sentiment amidst economic uncertainty.

Value Strategies and McValue Platform: The U.S. launched the McValue platform, featuring a $5 Meal Deal that has shown promising results, resonating with customers and leading to a positive comp guest count gap versus competitors. While the Buy One, Add One for $1 component is receiving a strong take rate, its incrementality is weaker than desired, prompting potential adjustments to future value offerings to enhance effectiveness.

International Market Dynamics: The International Operated Markets (IOM) segment experienced a comp sales decline of 1%, with mixed results across major markets. While traffic is positive in only two of the big five markets, McDonald's remains focused on maintaining its competitive edge through value and marketing execution, with localized strategies in countries like France showing early signs of recovery.