Call it the McRecession.

• The number of low-income consumers visiting U.S. fast-food restaurants was down "nearly double digits" in Q1 compared to 2024, McDonald's CEO Christopher Kempczinski said today.
• Visits from middle-income consumers across the industry "fell nearly as much."

Zoom in: U.S. comparable sales fell 3.6% at the Golden Arches, the company's worst showing since the pandemic. And McDonald's isn't alone.

• Starbucks' comparable sales declined 1% in the quarter, the coffee giant announced yesterday, its fifth consecutive quarterly decline.
• Domino's Pizza said consumers are gravitating from more expensive delivery options to cheaper carryout.
• And Wingstop CEO Michael Skipworth flagged "a meaningful pullback in our business" in "specific pockets," including Hispanic customers and "lower middle income" consumers.

The big picture: It's the latest sign that people are pinching pennies amid recession fears.

• Concerns about job losses and fears about price hikes from President Trump's tariffs have fueled what Conference Board senior economist Stephanie Guichard recently called "pervasive pessimism about the future."

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The simple thought of replacing Elon Musk as CEO of Tesla is not so simple at all.

• It stirs up practically unanswerable questions about who could possibly take his place, how Musk would handle it and how investors would react.

Why it matters: Musk and Tesla's chair today vehemently denied a WSJ report saying the EV company's board had launched a search process for a new CEO to potentially replace the world's richest person.

• Tesla has suffered declining sales since Musk became an outspoken ally of President Trump and leader of the federal budget-slashing DOGE, though last week Musk pledged to refocus most of his time on Tesla.

What they're saying: "I can't think of anybody on the face of the Earth or Mars who can replace Elon Musk," says University of Michigan business professor Erik Gordon, who has advised numerous companies on CEO transitions.

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Kohl's CEO Ashley Buchanan was fired after the board said he violated conflict-of-interest standards by inappropriately directing business to someone with whom he had a "personal relationship."

Zoom in: In an SEC filing, the company said the arrangement involved "highly unusual terms favorable to the vendor" and that Buchanan also "caused the Company to enter into a multi-million dollar consulting agreement wherein the same individual was a part of the consulting team."

• He did not disclose the relationship, as the company required in its ethics code, according to Kohl's.

The big picture: Buchanan was on the job less than four months, representing just the latest episode in the C-suite carousel for the struggling department store chain

The other side: Buchanan could not be immediately reached for comment.

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🚗 General Motors expects a tariff impact of $4 billion to $5 billion this year — almost one-third of its expected profits for 2025. The company said it does not plan to pass the costs on to consumers through higher prices. (Axios)

🏍️ Harley-Davidson withdrew its 2025 earnings outlook amid uncertainty about the economy due partly to the trade war. The motorcycle maker expects Trump's tariffs to cost the company up to $175 million this year. (Bloomberg)

🏭 Mercedes-Benz plans to add production of a new vehicle to its plant in Alabama. Foreign automakers are under pressure from tariff hikes to boost U.S. manufacturing. (CNBC)

Microsoft said it is raising the recommended retail prices of its Xbox video game consoles and some controllers globally.

• The tech giant didn't reference tariffs specifically, but its updated support page cited changing "market conditions."

State of play: Xbox consoles are now $80 to $100 more per model.

• Microsoft's entry-level Xbox Series S now costs $379.99, an $80 increase from its previous sticker price of $299.99.
• The Xbox Series X is now $599.99, up $100 from its previous $499.99.
• The company also said that its recommended prices for new games will be $79.99 "starting this holiday season."

The full list of pricing changes in various territories can be found on Microsoft's support page.

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