Fast-food chain McDonald's Corp stock is trading lower in premarket on Thursday after the company released its first-quarter FY25 earnings.

The company reported first-quarter revenue decline of 3.4% year-on-year to $5.96 billion, missing the analyst consensus estimate of $6.09 billion. Adjusted EPS of $2.67 beat the consensus estimate of $2.66.

Global comparable sales decreased by 1%, while U.S. comparable sales slipped by 3.6%. Comparable sales for the International Operated Markets segment declined by 1%, and the International Developmental Licensed Markets segment improved by 3.5%.

Systemwide sales decreased 1% (increased 1% in constant currencies).

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"Consumers today are grappling with uncertainty, but they can always count on McDonald's for both exciting new menu items and delicious favorites for exceptional value, from a brand they love," said

The company's systemwide sales and revenue have continued to be negatively impacted by the war in the Middle East, primarily in the International Developmental Licensed Markets, where the majority of restaurants are under a developmental license or affiliate arrangement.

McDonald's is monitoring the evolving situation, which it expects to continue to have a negative impact on Systemwide sales and revenue until the war concludes and the macroeconomic conditions recover. 

Sales by company-owned and operated restaurants fell 9% to $2.13 billion, while sales from franchised restaurants dropped 2% at $3.66 billion.

Systemwide sales through McDonald's loyalty programs exceeded $31 billion over the past twelve months, including $8 billion in the first quarter alone.

Total operating costs and expenses decreased 4% to $3.3 billion. Operating income for the quarter declined 3% to $2.64 billion, with an operating margin of 44.5% compared to 44.3% last year.

Price Action: MCD shares traded lower by 1.47% at $314.96 in premarket at last check Thursday.

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