McDonald's (MCD) first-quarter revenue fell short of market estimates while same-store sales unexpectedly declined, as macroeconomic uncertainties and geopolitical tensions dampened consumer sentiment.

The fast-food giant reported adjusted earnings of $2.67 a share for the March quarter, down from $2.70 the year before, but above the FactSet-polled consensus of $2.66. Revenue decreased to $5.96 billion from $6.17 billion, below the Street's view for nearly $6.1 billion.

Comparable sales on a global basis decreased 1%, compared with the 1.9% rise in the prior-year quarter. Analysts on FactSet estimated the metric to rise by 0.5%. The stock was down 1.2% in Thursday trade.

Geopolitical tensions on top of macroeconomic uncertainties weakened consumer sentiment during the quarter more than the company expected, Chief Executive Chris Kempczinski said during an earnings call, according to a FactSet transcript. The group believes it can "weather these difficult conditions," but is not immune to the industry volatility or the pressures facing consumers, Kempczinski said.

Last month, US President Donald Trump announced sweeping new tariffs on imports, including from China. Trump later declared a 90-day pause on certain duties for non-retaliating countries, though Washington and Beijing have been in a deadlock. The Trump administration has reached out to China to begin tariff discussions, media outlets reported Thursday.

"While we expected global (quick service restaurant) industry traffic would be down in the first quarter, actual industry traffic fell more than we anticipated in several of our large markets, including the US," Kempczinski said on the call.

US same-store sales fell 3.6% versus growth of 2.5% last year, mainly due to negative comparable guest counts, according to the company. Overall industry traffic from low-income consumers "was down nearly double digits" on a yearly basis, while "traffic from middle-income consumers fell nearly as much," according to Kempczinski.

"However, traffic growth from the high-income cohort remains solid, illustrating the divided US economy, where low and middle-income consumers in particular are being weighed down by the cumulative impact of inflation and height and anxiety about the economic outlook," the CEO told analysts.

On Wednesday, government data showed that US economy contracted in the March quarter, representing the first quarterly decline in three years.

Comparable sales in international developmental licensed markets rose 3.5%, mainly driven by the Middle East and Japan segments, McDonald's said. Same-store sales in international operated markets ticked down 1%, primarily impacted by negative results in the UK, according to the company.

McDonald's now expects foreign currency to be a $0.05 per-share tailwind to its earnings for 2025, compared with previous projections for it to be a headwind of $0.20 to $0.30, reflecting the recent weakening of the US dollar versus other major currencies, Chief Financial Officer Ian Borden said on the call.

The company reiterated its previously issued full-year 2025 targets, including impacts from tariffs that are currently in place, according to Borden. In February, the company said it aimed to achieve a full-year operating margin in the mid- to high-40% range and spend between $3 billion and $3.2 billion in capital expenditures, among other objectives.

"Despite the ongoing industry headwinds, we know that McDonald's is well-positioned to succeed due to the resiliency of our business and our overall financial strength," Borden told analysts.