McDonald's sales in the U.S. fell for the first time in a year and a half due to the failure of its affordable menu

McDonald's attempts to attract Americans to its restaurants with budget-friendly offers have not yet yielded the expected results; however, an increase in the average check has offset the decline in the number of customers. Rising prices in the U.S. are forcing consumers to choose cheaper alternatives from competitors.

The fast-food giant reported a 0.2% decline in same-store sales at its U.S. restaurants in the third quarter, although Wall Street analysts had expected a steeper drop of 0.5%, Bloomberg reports, citing data from StreetAccount. McDonald's attributed the better-than-expected results to customers spending more per visit, though it did not provide further details.

The decline in U.S. sales brought an end to a streak of five consecutive quarters of growth. The U.S. market accounted for 38% of McDonald's revenue in the previous quarter, so the company needs to improve its performance there, the agency notes.

Over the past two years, McDonald's has launched a number of promotions, such as a menu featuring $3 items and $4 breakfasts; however, the rising cost of living is forcing consumers to choose cheaper alternatives from competitors, convenience stores, and home-cooked meals, Reuters notes.

Amid declining sales, the chain is moving away from short-term promotions in favor of formats that have proven effective—such as the Extra Value combo packs, which were last sold before the pandemic—and is bringing back discounts in the app. At the same time, the company is trying to align its updated pricing strategy with a broader development plan that has sparked discontent among franchisees: McDonald’s has pledged to allocate $8.5 billion toward rent and capital support for operators to modernize restaurants, menus, service, and marketing.

The company reported net income of $2.49 billion, up 9% from a year earlier. McDonald’s division responsible for developing licensed markets internationally, including Japan and China, reported a 4.2% increase in same-store sales, which is twice as high as StreetAccount’s estimates, according to CNBC.

"Declining revenue, ineffective advertising campaigns, and overly packed marketing schedules" were the main challenges facing franchise operators this quarter, said BTIG analyst Peter Saleh ahead of the earnings release, according to Yahoo Finance.

The introduction of new themed drinks to the restaurant’s menu was a positive development, according to Citi analyst John Tower. “We remain confident in the prospects of the beverage market as a broader platform, [and] another attempt to offer an affordable product is expected in early 2027,” Yahoo Finance quotes Tower as saying.

The company's stock rose 5% during trading on November 4, but has lost about 10% since the beginning of the year.

Sky Anderson recently took over as head of the U.S. division. She replaced Joe Erlinger in August after comparable sales in the U.S. rose by only 0.8% in the second quarter—the weakest performance since the beginning of 2025. Among the priorities of McDonald’s new U.S. head are developing an affordable menu and streamlining restaurant operations. The company announced plans to invest $8.5 billion by 2036 to support restaurant technology upgrades, including rent reductions and capital investments, as well as the implementation of AI-based technologies.

Other measures to attract customers include expanding the beverage menu: in August, McDonald's launched drinks based on Red Bull energy drinks. The company had previously noted that customers are increasingly ordering drinks with their main meal and visiting restaurants in the afternoon.

“Franchisees are extremely skeptical about the possibility of a significant increase in profits, are unsure of the need for a large-scale renovation program, and note that very few details have been provided regarding costs and joint investments,” Saleh said in a comment on the new strategy. “Without a substantial reduction in construction costs and additional field testing, we do not believe the project can be implemented.”

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