McDonald’s Customers Too Worried About the Economy to Splurge on Big Macs
It appears less people are eating McDonald's, but not necessarily for health reasons.
Associated Press reports McDonald's store traffic "fell further than expected in the first quarter as economic uncertainty weighed on diners."
In the U.S., store location sales dipped 3.6 percent in the first quarter of 2025—the biggest decline for McDonald's since Covid-19 hit in 2020, which resulted in temporary store closings.
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In a call with investors on May 1, CEO Chris Kempczinski revealed that lower- and middle-income customers cut back on fast-food spending in Q1 due to concerns about the economy, including worries about inflation and price increases due to the Trump administration's tariffs.
Is McDonald's Too Expensive Now?
While McDonald's used to be a cost-effective (and, let's face it, convenient) option for thrifty spenders to purchase a filling meal for themselves or even their entire family, that's no longer the case for many.
Some customers online have complained that the cost of going to McDonald's for dinner these days rivals that of going to a chain restaurant like Applebee's or TGI Fridays.
They're not entirely wrong: The fast food chain has seen a stark increase in their prices in recent years due to inflation and other factors.
Why Is McDonald's so Expensive?
The average cost of a McDonald's cheeseburger jumped from $1.55 to $2.40 between 2021 and 2024, marking a 55 percent increase in just three years, according to Eat This, Not That.
Nowadays, a Big Mac is more of a craving-fueled splurge than the casual answer to, "Hey, what do you wanna eat? Let's get something cheap!"
Speaking of Big Macs, according to Yahoo! Finance, the average cost of a Big Mac in the U.S. is $5.79—a far cry from its original 45 cents price in 1967.
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According to McDonald's, the reason for its rising menu prices is due to an increase in operational costs such as labor and ingredients.
Still, some consumers were already eating less McDonald's last year due to the chain's prices.
In a February 2024 earnings call, CEO Chris Kempczinski shared that the company's lower-income guests had been visiting the fast-food restaurant less or opting for cheaper options off the menu.
