McDonald’s wins sales, loses price-sensitive diners

McDonald’s reported its same-store sales increased 3.8% last quarter, led by a 2.5% boost in the US as customers returned for promotions like double cheeseburger meals and revived Snack Wrap.

The results mark a rebound from sluggish performance in recent quarters.

However, the fast-food giant acknowledged that lower-income consumers are visiting less frequently, with middle- and higher-income customers making up the difference.

CEO Chris Kempczinski emphasized the importance of winning back price-sensitive diners, noting that combo meals priced above $10 are hurting value perceptions.

Efforts such as the $5 McValue menu and app-exclusive deals have helped, but more work remains.

Strong financial beat expectations
McDonald’s earned $3.19 per share, beating analyst expectations, and posted an 11% jump in net income. Revenue hit $6.8 billion, up 5% year-over-year.

Internationally, same-store sales rose 4% in company-operated outlets across Canada and Europe.

In franchise-led markets like China, Japan, and the Middle East, sales surged 5.6%, with Japan leading the growth.

Rising food and labor costs continue to challenge fast-food chains, as overall US restaurant traffic dropped 1.8% this year.

Despite these headwinds, McDonald’s plans to open 2,200 restaurants in 2025 and boost sales with promotions, new beverages, and popular menu returns.