As McDonald’s Stock Plummets, CEO Vows To Focus on Affordability – State of the Union
McDonald’s CEO Chris Kempczinski addressed concerns over higher menu prices and the impact on affordability during the company’s latest earnings call.
Global same-store sales were up 3.4%, but lower-income customers showed a sales dip due to increased menu prices.
The CEO emphasized the importance of affordability for these customers and highlighted plans to ensure value for them.
Kempczinski said, “Eating at home has become more affordable.”
“The battleground is certainly with that low-income consumer,” he continued.
“What you’re going to see is more attention to affordability,” explained the CEO.
“Think about that as an absolute price point, which is more important for that consumer to get them into the restaurants than maybe value messaging. We are set up well to go after that,” added Kempczinski.
Franchises can set their own prices, leading to variations in menu prices by location.
Kempczinski later posted, “we remain confident in the resilience of our business.”
“There will be some activity at the local level to make sure we continue to provide value for the lower-income consumer,” he continued.