SUPER-SIZE THAT INFLATION! McDonald’s CEO promises ‘affordability’ amid backlash over $18 Big Mac combos, $6 hash browns.
McDonald’s CEO admitted the burger giant’s sales have taken a hit as jacked-up menu prices have turned off core customers — and signaled the chain plans to focus on “affordability” this year.
The Chicago-based fast-food behemoth — which has lately taken heat over a Big Mac combo meal priced at nearly $18 — said its global same-store sales in the latest quarter had grown just 3.4%, falling short of the 4.7% growth Wall Street had expected.
The lackluster quarter — which the company also blamed on conflict in the Middle East that has slammed franchisees overseas — sent McDonald’s shares on the New York Stock Exchange tumbling nearly 4%, to $285.97, at Monday’s close.
“I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability,” McDonald’s chief executive Chris Kempczinski said on a Monday earnings call with analysts.
In particular, low income customers making less than $45,000 per year have largely stopped ordering from McDonald’s. Pummeled by inflation, they’re eating at home more frequently as grocery prices come down, Kempczinski admitted.
Kempczinski’s predecessor Steve Easterbrook said in 2015 that he wanted to transform the corporation into a ‘modern, progressive burger company.’ Based on their out-of-control prices, and dwindling middle class base, mission accomplished!
Fortunately though, as America’s Newspaper of Record reports: McDonald’s Now Offering 36-Month, 0% Interest Financing On All Value Meals.