McDonald's (MCD, Financial) CEO, Chris Kempczinski, indicated that the financial strain on low-income customers is likely to persist into the coming year. During an event at Boston College's CEO Club, he emphasized the need for the company to prepare for another challenging year, highlighting the importance of a strong value proposition in all markets.
The iconic burger chain reported its first decline in quarterly same-store sales in four years back in July, as high inflation over the years led consumers to cut back on spending. In response, McDonald's launched a limited-time $5 meal deal in June and is exploring further enhancements to its affordable product offerings.
Company executives have previously noted that consumer pressure is expected to continue over the coming quarters. One cost-effective strategy involves focusing more on chicken products, which are cheaper than beef and have gained popularity. Kempczinski pointed out that beef prices are more than twice those of chicken per pound, making chicken products easier to offer at a discount than beef options.
McDonald's is set to release its third-quarter earnings on October 29.
