McDonald's Sounds Alarm On US Consumer Spending

Benzinga

McDonald’s warned that lower-income U.S. consumers continue to pull back, with nearly two years of double-digit traffic declines. CEO Chris Kempczinski said high living costs are pushing families to cut even fast-food spending, and a “challenged consumer environment” may last into 2026. The company is relying on promotions like Snack Wraps and value meals to retain budget-conscious diners.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02McDonald's warned of continued weakness among lower-income U.S. consumers,

00:06citing nearly two years of double-digit traffic declines in this group,

00:09according to its latest earnings call.

00:11CEO Chris Kamzinski said inflation and high living costs,

00:14including housing, child care, and food,

00:15are forcing many families to cut back even on fast food.

00:19To retain budget-conscious diners,

00:21McDonald's has leaned on promotions such as the return of snack wraps

00:23and extra value meals, aiming to maintain its affordability image.

00:27Kamzinski said value matters across all income levels,

00:30but expects the highly challenged consumer environment to persist well into 2026.

00:35McDonald's is balancing affordability with profitability

00:37as lower-income consumers reduce spending,

00:40exposing a widely divided U.S. spending power.

00:42For all things money, visit Benzinga.com.

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