CNN – Inflation has caught up with McDonald’s, and budget-conscious Americans are looking elsewhere for their fast-food fix. But McDonald’s believes it has a solution: Value meals.
McDonald’s on Monday reported that sales at US stores open at least a year fell 0.7% last quarter from the same period a year earlier, dragged down by fewer customers going to the fast-food company’s restaurants.
McDonald’s isn’t alone: Starbucks, Burger King, Wendy’s and other rivals are also reporting less foot traffic and lower overall sales as consumers pull back their spending on food away from home.
The tough environment for McDonald’s wasn’t limited to the United States: Sales at stores open for at least a year fell 1% globally. It’s the first time sales fell by that measure since the last quarter of 2020.
Several factors were operating against McDonald’s this past quarter, including a tough comparison to last year. In the same quarter a year ago, McDonald’s got a 10.3% sales boost, mostly attributed to its viral Grimace shake — a purple, sugar-loaded drink in honor of Grimace’s “birthday.”
\The shake became a sensation after TikTok users posted videos of themselves pretending to die after drinking the shake.
But McDonald’s also has said for the past several quarters that some customers — particularly low-wage earners — are revolting against what many see as bad value.
“Beginning last year we warned of a more discriminating consumer, particularly among lower income households — and as this year progressed, those pressures have deepened and broadened,” said CEO Chris Kempczinski on a conference call with investors Monday morning.
So the company in December unveiled an expansion of its strategic plan to lure back price-conscious customers.
The plan focuses on value meal plans like the popular $5 meal introduced earlier this summer …
