McDonald’s executives have finally acknowledged that the $18 Big Mac menu and other high prices are driving low-income customers away.
“We do know that consumers are becoming more wary or fed up with pricing,” Chief Financial Officer Ian Bowden told investors on Monday’s earnings call.
of transcript In a conversation obtained by Business Insider, CEO Chris Kempczinski also said that McDonald’s customers, especially those with lower incomes, are ordering less than in previous years. became.
According to an Insider analysis, company executives told investors during an October earnings call that the price increases caused “little concern for customers.”
Menu prices rose about 10% in 2022 and again in 2023, Borden said.
Big Mac Burger, Medium Drink, Medium Fries Meal now cost $18 Breitbart News reported in November 2023 that prices in some areas were $10 higher than in 2018, when former President Donald Trump was in office.
“The pressure on American consumers is low-income consumers,” Kempczinski said on a recent phone call. “Let’s say under $45,000. That consumer is under pressure.”
“From an industry perspective, we have really seen that cohort decline in recent quarters, especially as eating at home has become more affordable.”
Echoing remarks he made on an October investor call, the CEO said McDonald’s hasn’t seen “a real change in behavior” among middle-class and upper-class customers.
For lower-income groups, the fast food giant plans to focus on cheaper menu items in the $1 to $3 range.
Kempczinski added that “the battleground is certainly low-income consumers” and said more attention to “affordability” is needed.
McDonald’s CEO says the company will focus on affordability amid price complaints.
“As we move into 2024, the focus is probably going to be on what I would call affordability,” McDonald’s CEO Chris Kempczinski said on an earnings call with analysts. Told. pic.twitter.com/sp6rosNMyZ
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After executives’ comments were made public, McDonald’s stock plummeted. fell down ABC News reported an increase of nearly 4 percent.
