Fast food restaurants are still in decline: April traffic slips and McDonald’s, Chipotle sales slump in Q1
Despite a strong start to the year, traffic at U.S. quick service restaurants (QSR), which has been steadily declining month by month, was down 1.7% year-over-year compared to last April, signaling growing consumer caution or shifts in dining behaviors, according to Revenue Management Solutions (RMS), a company that analyzes data and provides insights about the restaurant industry. At the same time, RMS found on average, fast food prices increased in April by +2.0% year-over-year, steady with inflation trends. In case you’re not familiar with restaurant industry lingo, a quick service restaurant (QSR) describes establishments that prioritize speed and convenience, sometimes used interchangeably with the term “fast food”—which brings to mind McDonald’s, Wendy’s, and Burger King, but also includes a wider variety of restaurant chains such as Dunkin’ Donuts, Chipotle, Domino’s, and Boston Market. Many fast food and fast casual chains are seeing slower growth and declining sales fueled by high prices, inflation, and fears that President Trump’s tariffs will cause a recession, which have prompted fewer Americans to eat out. For example, for the first quarter of 2025, Chipotle not only missed revenue estimates but said same-store sales dropped for the first time since 2020. And McDonald’s, which reported earnings on May 1, said sales dropped in the beginning of the year, marking its second consecutive quarter of declines. The chain’s same-store sales dropped 3.6% in the U.S.— the worst drop since 2020 during the COVID-19 pandemic, according to CNN. RMS’s Q1 consumer survey also found 40% of American diners said they’re spending less of their disposable income on restaurants, with 1 in 4 U.S. consumers reporting instead that they’re shopping at grocery stores, citing better value. As Fast Company previously reported, rising menu prices in 2024 at McDonald’s, Taco Bell, Wendy’s, KFC, and other fast food chains caused a consumer backlash as price-conscious customers decided the food wasn’t worth the cost. This lead to sales declines and the closure of some underperforming chain locations, including for Wendy’s and Shake Shack. A closer look at RMS’s April numbers, which compare fast food performance trends YOY (April 2025 to April 2024), shows that while average prices increase 2.0% YOY, net sales also increased 0.5% YOY, with the average check price rising 2.1% YOY. Broken down by meal time, the numbers show breakfast traffic decreased the most by some -9.1% YOY, and lunch was down 3.1% compared to April of 2024, but customers for dinner were up 1.2% YOY, highlighting that Americans were still going out for dinner.
Despite a strong start to the year, traffic at U.S. quick service restaurants (QSR), which has been steadily declining month by month, was down 1.7% year-over-year compared to last April, signaling growing consumer caution or shifts in dining behaviors, according to Revenue Management Solutions (RMS), a company that analyzes data and provides insights about the restaurant industry.
At the same time, RMS found on average, fast food prices increased in April by +2.0% year-over-year, steady with inflation trends.
In case you’re not familiar with restaurant industry lingo, a quick service restaurant (QSR) describes establishments that prioritize speed and convenience, sometimes used interchangeably with the term “fast food”—which brings to mind McDonald’s, Wendy’s, and Burger King, but also includes a wider variety of restaurant chains such as Dunkin’ Donuts, Chipotle, Domino’s, and Boston Market.
Many fast food and fast casual chains are seeing slower growth and declining sales fueled by high prices, inflation, and fears that President Trump’s tariffs will cause a recession, which have prompted fewer Americans to eat out. For example, for the first quarter of 2025, Chipotle not only missed revenue estimates but said same-store sales dropped for the first time since 2020.
And McDonald’s, which reported earnings on May 1, said sales dropped in the beginning of the year, marking its second consecutive quarter of declines. The chain’s same-store sales dropped 3.6% in the U.S.— the worst drop since 2020 during the COVID-19 pandemic, according to CNN.
RMS’s Q1 consumer survey also found 40% of American diners said they’re spending less of their disposable income on restaurants, with 1 in 4 U.S. consumers reporting instead that they’re shopping at grocery stores, citing better value.
As Fast Company previously reported, rising menu prices in 2024 at McDonald’s, Taco Bell, Wendy’s, KFC, and other fast food chains caused a consumer backlash as price-conscious customers decided the food wasn’t worth the cost. This lead to sales declines and the closure of some underperforming chain locations, including for Wendy’s and Shake Shack.
A closer look at RMS’s April numbers, which compare fast food performance trends YOY (April 2025 to April 2024), shows that while average prices increase 2.0% YOY, net sales also increased 0.5% YOY, with the average check price rising 2.1% YOY.
Broken down by meal time, the numbers show breakfast traffic decreased the most by some -9.1% YOY, and lunch was down 3.1% compared to April of 2024, but customers for dinner were up 1.2% YOY, highlighting that Americans were still going out for dinner.
