**McDonald’s Sales Rise, but CEO Expects Low-Income Diners to Spend Less into Next Year**
As of November 2025, **McDonald’s continues to report overall sales growth**, but its leadership remains candid about a worrying trend: **low-income customers are cutting back**, and this is likely to persist into the next year. CEO Chris Kempczinski and other executives have openly acknowledged this shift, underscoring both the resilience and the challenges facing the world’s largest fast-food chain.
## The Paradox: Sales Up, but Profits Pressured
McDonald’s global sales have seen a modest rise over the past year, buoyed by menu innovation and aggressive marketing. Yet, the company’s financial reports paint a more nuanced picture. **Net income dropped by 12% from June 2023 to June 2024** as more families, especially those in lower-income brackets, opted to eat at home to save money[1]. For the first time since late 2020, worldwide same-store sales fell by 1% between April and June 2024[1].
This drop is not merely a blip but reflects **broader economic anxieties**. As inflation and the cost of living remain high, even as price growth slows, grocery prices have soared by over 20% since the pandemic, pushing many to tighten their budgets[1]. A recent poll showed that 80% of Americans now consider fast food a luxury rather than an everyday choice, a stark shift from past perceptions[1].
## Low-Income Diners: A Disappearing Core
McDonald’s has long targeted value-conscious diners, especially those from lower-income households, with affordable menu options[2]. However, **CEO Chris Kempczinski recently admitted that these diners continue to feel “a lot of anxiety and unease about the economy,”** leading to a drop in visits from this demographic[2]. Some analysts, like Dennis Geiger at UBS, have observed that many are now choosing to shop for groceries and cook at home rather than eat out, representing a significant behavioral shift[2].
This presents a **core tension** for McDonald’s: the company risks becoming “too pricey for the poor and not posh enough for the less so.” With rising menu prices intended to offset higher input costs and wages, the brand is increasingly squeezed between cost-conscious diners and customers seeking a more premium experience elsewhere[2].
## The $5 Meal Deal: Fighting to Retain Value Shoppers
In response to these headwinds, McDonald’s rolled out a **$5 meal deal** in June 2024 across the US, offering a burger or chicken sandwich, fries, nuggets, and a drink for a single low price[1]. Originally intended as a short-term promotion, the deal was extended through the summer as the company sought to stem the loss of budget-conscious customers[1].
These value meals directly target the fast-food segment’s most price-sensitive customers, but they also reflect an industry-wide trend: **Burger King and Wendy’s quickly launched similar deals**, and major retailers like Target cut prices on grocery essentials, intensifying competition for the wallets of low-income Americans[1].
## CEO Outlook: Continued Pressure into Next Year
Despite some improvement in the broader economy, McDonald’s leadership remains cautious. **CEO Kempczinski and US President Joe Erlinger have both warned that low-income customers will likely continue to “feel the pinch” for at least several more quarters**[1]. The company recognizes the need to keep prices accessible without eroding franchisee profitability, a delicate balance that will define its strategy into 2026[2].
Kempczinski has also acknowledged that **consumers are increasingly sensitive to price increases**. “At the end of the day, we expect customers will continue to feel the pinch of the economy and a higher cost of living for at least the next several quarters in this very competitive landscape,” said Erlinger[1].
## The Broader Economic Context
Inflationary pressures are still present even as they moderate, especially for essentials. Grocery bills have risen by an average of 21% since the pandemic, and wages have not always kept pace, particularly for lower-income workers[1]. As a result, the “trade down” effect—where customers shift from eating out to buying groceries—has become more pronounced.
This trend is not unique to McDonald’s, but as the sector leader, the company’s results and strategic decisions are closely watched. The $5 meal deal and other value-focused initiatives may help retain some customers, but executives are realistic about the limitations of these efforts in the face of persistent economic strain.
## Navigating the “Squeezed Middle”
McDonald’s finds itself in a challenging position: **if it raises prices too much, it risks alienating its core value-seeking customers; if it lowers them too far, it squeezes franchisee profits**[2]. There is also a risk of being “stuck in the middle,” unable to appeal either to budget diners or to those seeking a more premium experience[2].
The company’s unique business model, which relies heavily on franchisees, provides some insulation from external shocks but also requires careful coordination to ensure both corporate and local profitability[2]. As rivals innovate and the retail landscape shifts, McDonald’s must continue to adapt its menu, pricing, and marketing.
## Looking Ahead: Strategy for 2026
The year ahead will test McDonald’s ability to balance **affordability, value, and profitability**. The company is likely to continue experimenting with limited-time offers, bundled meals, and digital promotions to entice price-sensitive diners.
At the same time, it must maintain its brand reputation and menu quality to avoid losing ground to both traditional competitors and new entrants offering premium or niche alternatives.
As Kempczinski put it, **“The hallmark of a great company is its ability to perform in good times and bad”**[1]. For McDonald’s, the challenge of retaining low-income diners—while growing sales and profits—will remain a defining issue well into 2026.
Original source: CNBC Business – McDonald’s sales rise, but CEO expects low-income diners to spend less into next year