McDonald's CEO Chris Kempczinski said the company now expects high inflation to persist for "many more years," with little growth expected in restaurant traffic. The company reported quarterly earnings and revenue broadly in line with analysts' estimates, but U.S. same-store sales rose just 0.8%, below expectations and down sharply from 2.5% a year earlier, while global comparable sales rose 1.3%, down from 3.8% in the previous quarter. Kempczinski said the results were "below our expectations," acknowledging the company did not get the traction it wanted from its under-$3 value menu, and noted beef prices have nearly doubled over five years across its largest markets. McDonald's is trying to win back price-conscious customers with $4 meals and items priced below $3, including the McDouble, McChicken and four-piece Chicken McNuggets, as spending at the chain among households earning $40,000 or less fell 2.4% year over year in the latest quarter, according to Numerator data cited by Business Insider. McDonald's USA President Joe Erlinger said in an open letter that average menu prices rose about 40% between 2019 and 2024, roughly in line with the company's labor and food cost increases.
McDonald’s CorporationU.S. same-store sales rose just 0.8% and global comparable sales slowed to 1.3%, with low-income household spending down 2.4%, signaling weak end-customer demand.
