It is no secret that McDonald’s (MCD) is in a tough battle with weak consumer demand. Ever since the fast-food chain faced controversy last year for hiking its menu prices and suffered an E. coli outbreak in a few of its restaurant locations, consumers have been pulling back.
In McDonald’s first-quarter earnings report for 2025, it revealed that its U.S. comparable sales decreased by 3.6% year-over-year.
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Also, according to recent data from Placer.ai, foot traffic in McDonald’s stores fell by 2.6% during the quarter.
Related: McDonald’s CEO sounds alarm on major customer problem
During an earnings call on May 1, McDonald’s CEO Chris Kempczinski said that consumers are cutting their spending on fast food more than previously expected.
“We entered 2025 knowing that it would be a challenging time for the QSR industry due to macroeconomic uncertainty and pressures weighing on the consumer,” said Kempczinski. “During the first quarter, geopolitical tensions added to the economic uncertainty and dampened consumer sentiment more than we expected.”
McDonald’s makes an unexpected announcement
Amid this alarming consumer trend, McDonald’s has been making several bold attempts to attract back customers.
In its latest effort, the fast-food chain has announced that it will be extending its hours at restaurant locations nationwide, according to a new report from QSR Magazine.
Many McDonald’s locations will now be open 24/7, while others will remain open past midnight. This move allows it to compete directly with rivals such as Jack in the Box, Waffle House, and Whataburger, which are open 24 hours.
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“Our fans know there’s no better way to end an unforgettable night than by feasting on your favorite McDonald’s order,” said McDonald’s spokesperson in a statement to QSR. “That’s why, as the summer season kicks off, we’re excited to offer up more ways for customers to satisfy their late-night cravings with more choices and expanded hours at more restaurants.”
The change comes shortly after McDonald’s announced that it will hire up to 375,000 new employees across the country this summer as it plans to open 900 new U.S. restaurant locations by 2027.
McDonald’s scrambles to fix weak sales
Recently, McDonald’s has been relying on deals and the return of fan-favorite menu items to boost its struggling sales.
Last summer, the fast-food chain launched its $5 Meal Deal, which offers a meal that consists of a McChicken, four-piece chicken nuggets or a McDouble, along with fries and a drink.
It then launched the McValue menu earlier this year, which introduced its Buy One, Add One for $1 deal. In this deal, customers can buy a “full-priced” menu item from the McValue menu and purchase one more item of their choice for $1.
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According to Kempczinski, the Buy One, Add One for $1 deal hasn’t been performing as well as the $5 Meal Deal.
“When you look at the Buy One, Add One for $1, I’d say our view on that is it’s performing okay, but frankly, it’s not driving nearly the amount of incrementality that we’re seeing with the buy one or with the $5 Meal Deal,” said Kempczinski during the May 1 earnings call.
McDonald’s also recently hyped the return of its popular Snack Wrap onto menus, which is essentially chicken tenders, lettuce, shredded cheddar cheese, and ranch wrapped in a soft flour tortilla. It was previously discontinued in 2016.
The fast-food chain also permanently added McCrispy Strips to its menus earlier this month, which is a revamped version of its discontinued Chicken Selects.
In addition, McDonald’s announced the return of Happy Meals with Squishmallow toys last week, a menu item with a massive cult following. These will only be available on McDonald’s menus nationwide for a limited time.
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