- McDonald's second-quarter same-store sales fell to their lowest levels in five years.
- Diners are cutting back on visits to the chain, including at breakfast time.
- McDonald's has been trying to win over diners with a new value menu and its continued $5 meal deal.
McDonald's customers are visiting the chain less, even as the fast food giant tries to win over diners with a new value menu.
US same-store sales at McDonald's declined 3.6% during the second quarter, the restaurant said on Thursday. It was the biggest US decline since COVID lockdowns dampened foot traffic at McDonald's restaurants five years ago.
This time, a growing group of McDonald's patrons are visiting the Golden Arches less frequently, CEO Chris Kempczinski said on the company's earnings call on Thursday.
While low-income diners have been pulling back their spending over the past year, McDonald's saw more middle-income consumers do the same during its second quarter, Kempczinski said.
"People are just being more judicious in cutting back on visits," he said.
Diners have been spending less at McDonald's and other restaurant chains over the past year as worries about a potential recession have grown.
McDonald's has tried to win diners back with cheaper options. It unveiled a new value menu in January. The chain also launched a $5 value meal last year and has continued to offer it far beyond its initial one-month run time.
Despite the value offerings, diners haven't come back to McDonald's. Breakfast provides one example of the latest pullback.
For McDonald's, the meal is a "bellwether" of how diners are willing to spend, Kempczinski said. During the second quarter, the chain saw more customers look for alternatives to the chain's Egg McMuffin or Sausage Biscuit.
"You're seeing people are choosing either to skip breakfast or they're choosing to eat at home for breakfast," Kempczinski said.
The pullback wasn't unique to the US.
"In most of our major markets, we're seeing a similar story in regards to the challenging industry environment and softening consumer sentiment," CFO Ian Boden said during the company's earnings call.
Despite being one of the best-known American brands with a global presence, the chain's results weren't affected by pushback to US tariffs on foreign imports or other aspects of President Donald Trump's agenda, executives said.
"While there has been, I think, an uptick in general anti-American sentiment, that's had no impact on our business," Kempczinski said.
