McDonald’s too expensive, consumers prefer to eat at home

Lower-income Americans are increasingly choosing homemade meals over the golden arches, revealed McDonald’s CFO Ian Borden recently.

The retreat from fast-food isles is fueled by inflation, rising interest rates, and fast-diminishing savings. 

While home food prices sizzled up 1% in February, restaurant tabs are smoking hot with a 4.5% hike year over year. 

To woo back wallets, McDonald’s is dishing out value bundles priced at $4 or less in 90% of its US spots.

But it’s not just Americans feeling the pinch. Globally, McDonald’s is battling sales slumps, especially in the turbulent Middle East.

Despite these challenges, there’s a silver lining for consumers in the realm of food prices.

Overall food inflation is at its slowest pace since May 2021, per CPI data. Grocery store price hikes are at their lowest level since June 2021, while restaurant food inflation is also relatively modest compared to previous months.