Malaysian durian exports to China see a surge, with Musang King accounting for most of it, boosting exports by around 20%.
Fast Food Slump: McDonald's Struggles Amid Economic Anxiety and Trade Wars
New York, May 2 - The burger giant, McDonald's, faced a decline in first-quarter profits as worries about Trump's trade wars gnawed at American wallets.
The home turf of the United States saw a 3.6% drop in comparable sales, more pronounced than the 1% drop globally. According to Chief Financial Officer Ian Borden in a call with analysts, "Consumer visits have taken a nosedive, which mirrors the economic squeeze on regular Joes." Borden pointed out rising inflation, elevated interest rates, and their impact on lower-income consumers as major factors for this slump.
However, executives noted that high-income customers continued to frequent the chain unabated.
McDonald's plans to counter these challenges with more promotions focusing on its "McValue" platform, featuring budget-friendly US$5 meal deals in the U.S.
Profits fell to US$1.9 billion, a 3% drop, while revenues also dipped 3% to US$6 billion.
The chain painted a picture of a mixed bag across international businesses, with the UK posting weakness but promising results in the Middle East and Japan.
A poll conducted by McDonald's revealed no noticeable fallout in its international business due to anti-American sentiment. CEO Christopher Kempczinski stated, "Despite a surge in anti-American sentiment, our consumer love for McDonald's remains rock-solid." Kempczinski explained that the biggest negative impact was observed in Northern Europe and Canada.
Shares of McDonald's dipped by 1.3% in post-market trading.
Behind the Scene: Facing the Heat of Trade Wars
- Economic Struggles: Crumbling consumer confidence and tightened pocketbooks have led to a decrease in foot traffic at McDonald's. The U.S. seems to be bearing the brunt of the trade wars, which has fueled economic anxiety and contributed to lower sales among low- and medium-income consumers[2].
- Global Effects: While Trump's trade wars have stirred up global economic insecurities, McDonald's sales are more influenced by regional market conditions and consumer attitudes. The chain has reported a mixed performance globally, with some regions experiencing growth while others falter[1].
- Countermeasures: To navigate the shifting landscape, McDonald's has rolled out cheaper meal deals to woo price-conscious consumers and stimulate growth[2]. These actions demonstrate an adaptive approach to meet changing customer behavior and economic conditions.
[1] McDonald's Corporation, "McDonald's Corporation Reports First Quarter Results"
[2] "How McDonald's is adapting to the economic challenges of 2025," Forbes, April 2025.
- Economic struggles led to a decrease in foot traffic at McDonald's, with crumbling consumer confidence and tightened pocketbooks being major factors.
- The trade wars have fueled economic anxiety, contributing to lower sales among low- and medium-income consumers in the United States.
- McDonald's plans to counter the slump by rolling out cheaper meal deals under its "McValue" platform, aiming to stimulate growth and woo price-conscious consumers.
- While global economic insecurities have been stirred up by Trump's trade wars, McDonald's sales are more influenced by regional market conditions and consumer attitudes.
- The chain reported a mixed performance globally, with some regions experiencing growth, while others, like the UK, posted weakness, but promising results were seen in the Middle East and Japan.
