McDonald's Sees 0.8% U.S. Sales Growth as Beef Costs Nearly Double in 5 Years
Updated
Updated · CNBC · Sep 23
McDonald's Sees 0.8% U.S. Sales Growth as Beef Costs Nearly Double in 5 Years
3 articles · Updated · CNBC · Sep 23
Summary
Chris Kempczinski said McDonald's now expects flat restaurant traffic and sticky inflation to remain the industry's baseline, not a temporary headwind.
U.S. same-store sales rose just 0.8% in the latest quarter even as domestic traffic fell, reflecting diners' resistance to higher menu prices amid broader household cost pressure.
Beef costs in McDonald's biggest markets have nearly doubled over five years, while labor and construction expenses have also climbed, squeezing restaurant margins worldwide.
McDonald's is leaning on discounts and a market-share push to win customers from rivals, while weighing further price increases more cautiously after saying it raised prices too quickly after Covid.