Consumer pullback is hitting fast-food and quick-service giants hard in 2025. In recent earnings reports, McDonald’s (NYSE: MCD), Starbucks (NASDAQ: SBUX), and Chipotle Mexican Grill (NYSE: CMG) all flagged sharp traffic declines, signaling mounting economic pressure on American consumers.

McDonald’s Traffic Down Across Income Groups

McDonald’s CFO Ian Borden told analysts that the fast-food giant saw fewer customer visits in Q1, contributing to weaker-than-expected earnings. “People are just visiting less,” he said, linking the drop to broader consumer spending pressure.

CEO Chris Kempczinski added that low-income customer traffic fell by nearly double digits year-over-year, and for the first time, middle-income diners pulled back at similar levels, reflecting a more widespread economic squeeze.

The declines come as tariff volatility and inflation concerns—largely tied to recent policies under President Trump—have spooked consumers. The administration’s fluctuating trade stance has pushed inflation expectations to their highest since the 1980s, according to market analysts.

Chipotle Sees First Traffic Drop Since COVID-19

Chipotle’s Q1 earnings also revealed slowing same-store sales—the first such dip since the pandemic. CEO Scott Boatwright blamed the shift on consumers choosing to cut restaurant spending to save money, a trend that began accelerating in February.

“This trend has continued into April,” Boatwright said, referencing internal data showing reduced visit frequency due to economic anxiety.

Starbucks Faces Fifth Straight Quarter of Slumping Sales

Starbucks, meanwhile, posted a fifth consecutive quarter of falling comparable U.S. store sales. CEO Brian Niccol cited a “tough consumer environment” but said the company will not raise prices in 2025. Instead, Starbucks is hiring more baristas and focusing on improving service—positioning its product as an affordable luxury even in uncertain times.

“People still want that little luxury,” Niccol said. “We’re focusing on connection, not cost-cutting.”

Broader Industry Trend: Discretionary Spending Dips

These reports align with Bank of America credit card data, which showed a softening in discretionary spending categories like dining out, travel, and entertainment in March. The slowdown is impacting both premium and value-focused chains, indicating that the consumer retreat is broad-based.

Despite economic challenges, McDonald’s stock rose 1.51% by midday Monday—likely buoyed by longer-term optimism—while Chipotle and Starbucks shares dipped 1.78% and 2.41%, respectively.