McDonald’s sales grow amid fast-food value wars

McDonald’s drove value meals, loyalty perks and menu innovation to stronger first-quarter sales growth Thursday, signaling consumers are still spending despite persistent economic pressure.

Why it counts:

McDonald‘s results show its affordability strategy is gaining traction with cost-conscious diners squeezed by years of inflation-driven price hikes.

Fast-food chains are increasingly leaning on new value menu launches, limited-time items and expanded drink offerings to drive traffic as consumers remain selective about spending.
By the numbers: U.S. Comparable sales increased 3.9%, in the quarter ending March 31, compared with a 1% decline a year earlier — driven primarily by higher average checks.

Global comparable sales rose 3.8%, compared with a 1% decline a year earlier.
Global system wide sales increased 6% in constant currencies to more than $34 billion.
Revenue rose 9% to $6.5 billion.

Zoom in: McDonald’s loyalty ecosystem continues to scale global.

Across 70 fidelity markets, systemwide sales tied to loyalty members topped $9 billion for the quarter and more than $38 billion over the trailing 12 months, the company said.
Between the lines: McDonald‘s is trying to balance multiple strategies — leaning into value offerings while pushing higher-margin menu items like the Big Arch Burger, which debuted during the quarter.

The company is also expanding into specialty beverages and pop culture-centric promotions.

McDonald’s rolled out new refreshers and handcrafted sodas nationwide this week, while its K-pop-themed meals debuted March 31 and helped drive the chain’s busiest week of 2026 so far, according to Placer.ai analysis.
What they’re saying: McDonald’s CEO Chris Kempczinski said the chain’s “value leadership, breakout marketing, and menu innovation” helped drive growth despite a “challenging environment.”

McDonald’s

on Thursday reported quarterly earnings and revenue that beat analysts’ expectations, as diners spend more at its U.S. restaurants even in what CEO Chris Kempczinski called “a challenging environment.”

Shares of the fast-food giant rose more than 3% in premarket trading.

Investors will be listening for any signs that consumers are feeling the pinch from higher gas prices on the company’s earnings conference call, which begins at 8:30 a.m. E.T. Other restaurant companies, from Domino’s Pizza
to Chipotle Mexican Grill
, have reported that sales softened in March, after the U.S. war with Iran started and led to spiking fuel prices.

Here’s what the company reported compared with what Wall Street was hoping, based on a survey of analysts by LSEG:

Earnings per share: $2.83 adjusted vs. $2.74 expected
Revenue: $6.52 billion vs. $6.47 billion expected
McDonald’s reported first-quarter net income of $1.98 billion, or $2.78 per share, up from $1.87 billion, or $2.60 per share, a year previously.

Excluding restructuring fees and other items, the chain earned $2.83 per share.

Net revenue rose 9% to $6.52 billion.

The company’s same-store sales increased 3.8% in the quarter, rough in line with Wall Street consensus estimates of 3.7%, according to StreetAccount.

In McDonald’s home market, same-store sales increased 3.9%, fueled by consumers spending more when they visited.

While the fast-food giant has leaned into value to win over budget-conscious diners, it has also been attempting to appeal to customers through marketing and innovation, usually at a slightly higher price point. Tie-in meals with “The Super Mario Galaxy Movie” and “KPop Demon Hunters” were not discounted. And its limited-time, supersized Big Arch burger, which launched in early March in the U.S., aimed to provide a premium burger option.

The company’s international operated markets sector also reported same-store sales growth of 3.9%. The division includes some of McDonald’s biggest markets, including France, Germany and Australia.

McDonald’s international developmental licensed markets segment saw same-store sales growth 3.4%. Japan was the division’s top performer in the first quarter.

May 7 (Reuters) – McDonald’s (MCD.N),

opens new tab missed Wall Street estimates for growth in quarterly U.S. earnings. Comparable sales on Thursday, as lower-priced meal deals and limited-time offers struggled to draw diners whose budgets have been strained by higher fuel and grocery costs.
After several years of price hikes, operators in the fast-food industry have been forced to rely more on value-driven promotions to revive demand as customers cut back spending.

The world’s biggest burger chain posted U.S. Same‑store sales growth of 3.9% in the first quarter, missing expectations of a 4.2% increase.
CEO Chris Kempczinski said the operating environment remained “challenging”, even though McDonald’s beat quarterly projections for revenue and profit, sending its shares up about 3% in premarket trading.

Several U.S. Restaurant chains such as Wingstop (WING.O), opens new tab and Domino’s (DPZ.O), opens new tab have reported weaker quarterly sales growth, citing a hit to customer spending from rising gasoline prices caused by the Iran war.
Lower-income consumers are becoming more selective, Wall Street analysts have said, increasingly trading down to simpler, single‑item orders rather than full meals.

McDonald’s U.S. Traffic remained even through the first quarter, data from Placer.ai showed.
Same-store visits fell 1.3% in January due to winter storms. Traffic rebounded 3.8% in February on pent‑up demand, but slipped to 1.2% in March in a more muted response ⁠to new menu launches as rising fuel prices further hurt household budgets.

To capture cost-conscious consumers, McDonald’s has expanded its McValue platform with new $3 and $4 tiers in April.
Globally, McDonald’s comparable sales rose 3.8%, narrowly missing analysts’ ⁠average expectation of 3.95%, though it was an improvement from a 1% decline a year earlier.

The company’s total revenue of $6.52 billion surpassed estimates of $6.47 billion, according to data compiled by ⁠LSEG. ​On an adjusted basis, it earned $2.83 per share, beating ​expectations of $2.74.

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