On The Daily (OTD) - 1st May 2025

Top Stories Today: Amazon and McDonald's.

Table of Contents

Top Stories Today

Amazon

Amazon posted stronger-than-expected first-quarter earnings and revenue, but investor reaction was dampened by cautious second-quarter forecasts amid trade uncertainty. While earnings per share and total sales exceeded analyst expectations, projections for the upcoming quarter fell short of Wall Street’s targets. CEO Andy Jassy cited tariff-related unpredictability as a major challenge, especially given the company’s dependence on Chinese-sourced goods via its third-party marketplace. Amazon’s advertising unit outperformed expectations, but cloud division AWS reported revenue slightly below forecasts for the third consecutive quarter. Overall, Trump’s tariffs continue to cast a shadow over Amazon’s future performance, prompting concern among investors.

McDonald’s

McDonald’s reported mixed results for the first quarter, with U.S. same-store sales falling 3.6%—the largest domestic decline since early 2020—due to weak consumer demand and bad weather. Overall, global comparable sales dipped 1%, driven by softness in key markets like the U.S., Australia, and France, while international licensed markets such as China and Brazil saw modest growth. Revenue came in at $5.96 billion, slightly below expectations, though adjusted earnings per share met forecasts at $2.67. Executives cited broader economic pressure on lower- and middle-income diners and emphasized renewed efforts to boost traffic through value meals, new items like McCrispy Chicken Strips, and marketing tie-ins such as Minecraft collectibles. Despite the sluggish start, the company maintained its 2025 outlook, including plans to open 2,200 new stores globally.

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