Loyalty Lessons From McDonald’s Q1 Earnings Report
There’s no sugar-coating McDonald’s Q1 2025 earnings report: Global sales were flat, U.S. sales fell 3.6%, revenue dropped 3%, operating income declined 3% due to restructuring charges, and earnings per share were down 2%.
There’s also no denying the significance of those disappointing figures: With more than 40,000 restaurants in more than 100 countries, McDonald’s performance reflects consumer behavior at scale, offering insight into the potential effects of current global economic uncertainty on the QSR industry.
Loyalty: A Silver Lining?
But viewing McDonald’s Q1 through a technology lens, we see some remarkably good news: Systemwide sales to loyalty members of approximately $8 billion for the quarter and more than $31 billion for the preceding 12 months across 60 markets. This represents a notable increase compared to Q1 2024, where loyalty member sales were over $6 billion for the quarter and nearly $25 billion for the 12 months preceding across 50 markets.
With its significant expansion of its loyalty program, both in terms of sales and the number of markets covered, it’s worth emphasizing how digital customer engagement efforts can pay off even during an economic downturn.
Below, HT offers five loyalty lessons that restaurants of any size can learn from McDonald’s.
- Loyalty Lessons from McDonald’s
A “Sticky” Ecosystem Inspires Loyalty: McDonald’s digital investments — such as in-app ordering, personalized offers, and drive-thru integration — create a “sticky” platform that makes it easier and more rewarding for customers to use loyalty.
Engaged Guests Spend More: Even as McDonald’s U.S. sales declined 3.6% in Q1 2025, loyalty spending remained strong. Loyalty programs are not just marketing tools, but revenue stabilizers, offering more predictable transaction volumes.
Consistency of Experience Matters: When loyalty programs are built on a centralized platform with shared data and analytics, brands of any size can deploy a consistent loyalty experience, uncover patterns, personalize offers, and make smarter decisions.
Personalization Pays Off: McDonald’s studies what guests like and sends them offers they’re more likely to use. The more your offers match your customers’ habits, the more likely they are to return and spend more.
Start Small: QSRs of any size can take a page from McDonald's playbook by using a customer data platform (CDP) to unify data from point-of-sale, mobile apps, online orders, and loyalty programs. With a CDP, operators can see patterns, spot opportunities, and deliver smarter, more personalized campaigns across multiple locations.