☕️ The surprising fast-food trend

Happy Friday.

One more day until the weekend, folks!

I’ve got 30 seconds

Some headlines from this morning:

The European Union could "very quickly" address the $50 billion trade deficit with the U.S., according to EU trade commissioner Valdis Šefčovič. In an interview with the Financial Times, Šefčovič suggested the EU could purchase American LNG and agricultural products like soybeans to balance the trade relationship. The comments come amid ongoing tensions between the EU and U.S. following President Trump's tariffs on EU imports and the bloc's retaliatory measures. Despite progress in negotiations, Šefčovič warned that securing a deal acceptable to all EU member states would be "very difficult."

A Trump-appointed federal judge in Texas has permanently blocked the administration from using the Alien Enemies Act to deport undocumented migrants without court hearings. In a 38-page ruling, Judge Rodriguez determined the administration's use of the law "exceeds the scope" of its authority. The Trump administration had invoked the act claiming the Venezuelan gang Tren De Aragua was staging an invasion of the U.S. The judge found insufficient evidence to support this claim, marking the first time a U.S. court has permanently restricted the administration's access to this deportation power.

General Motors has revised its projected earnings down by $5 billion for the next 12 months, citing the impact of tariffs. The U.S. auto giant's CEO said the adjusted forecast accounts for limited tariff relief granted to American car manufacturers on Wednesday. Despite the earnings reduction, the company expressed positive sentiment toward the administration, describing this week's tariff adjustments as "smart." The announcement comes as car manufacturers increasingly plan to relocate production to the U.S. in response to President Trump's policy pressure.

America has recorded its lowest-ever position on the World Press Freedom Index, an annual report released by non-profit Reporters Without Borders. The report also revealed that more than half the world’s population now lives in countries with little or no press freedom, and practising journalism is considered dangerous. The US ranked 57th in the list, which is the first time it has fallen into the band described by RWB as “problematic” (previously, it was in the band of “satisfactory). May 3 is World Press Freedom Day.

I’ve got 1 minute

President Donald Trump has nominated National Security Advisor Mike Waltz as the next U.S. Ambassador to the United Nations.

Waltz departed from his national security role months after he inadvertently added a journalist to a confidential Signal group chat containing classified information about military operations.

In a post on Truth Social, Trump announced: "I am pleased to announce that I will be nominating Mike Waltz to be the next United States Ambassador to the United Nations."

Secretary of State Marco Rubio will temporarily assume Waltz's national security responsibilities while continuing to serve as the nation's top diplomat.

Waltz in 2025

Waltz gained national attention when The Atlantic's editor-in-chief Jeffrey Goldberg revealed he had been accidentally added to a Signal group chat with top U.S. security officials.

Defense Secretary Pete Hegseth subsequently shared confidential details about a military strike in the group, which Goldberg could view. The White House later confirmed the authenticity of the messages.

Despite calls for Waltz's resignation following the incident, the administration continued supporting him until this announcement.

Before joining Trump's second-term administration, Waltz represented Florida in Congress as a Republican for six years. He was the first Special Forces soldier elected to the House of Representatives.

What happens next?

Waltz must now pass a Senate confirmation process to secure the UN position. Democratic lawmakers have signaled this will give them their first opportunity to question him about the Signal group chat incident.

The UN Ambassador role has remained vacant since Trump's previous nominee, Elise Stefanik, was asked to stay in Congress to support Republicans' House majority.

The administration has not provided a timeline for finding a permanent replacement for the National Security Advisor position.

I’ve got 2 minutes

McDonald's has reported its worst quarterly performance since 2020, with sales dropping 3.6% as middle and low-income consumers reduced restaurant visits.

The fast food giant joins other major chains including Starbucks and Chipotle that have reported declining sales in the first quarter of 2025.

Analysts suggest these results reflect growing consumer pessimism about the economy, which some consider an early warning sign of recession.

What’s driving recession fears?

On Wednesday, the U.S. Treasury announced the economy had contracted for the first time in three years, intensifying concerns about an economic downturn.

President Trump has blamed the previous administration for the economic challenges but promised conditions would improve soon.

A CNN poll released this week found that 66% of adults feel pessimistic about the current economic situation. Many analysts point to uncertainty surrounding the administration's tariff policies as a contributing factor.

The impact on dining

The broader dining sector experienced a 1.4% decline according to data cited by Axios.

Starbucks reported a 1% drop in quarterly sales, while Chipotle recorded its first quarterly sales decline in the past decade.

Chipotle's CEO attributed the downturn to consumer behavior, stating in the company's earnings call that "saving money because of concerns around the economy was the overwhelming reason consumers were reducing the frequency of restaurant visits."

Not all takeout

Not all fast food companies are struggling. Lower-cost options like Taco Bell continue to grow in store visits and sales.

Consumers seeking fast food appear to be increasingly choosing budget-friendly options with higher perceived value than more expensive competitors.

Economic analysts are watching these consumption patterns closely as potential indicators of broader economic trends heading into the second half of 2025.