From Fortune Magazine:

McDonald’s CEO hinted plans to lower menu prices to boost sales. On an earnings call, he revealed a drop in sales due to higher menu prices. As a result, more attention will be given to “affordability” in 2024 as sales growth has fallen below expectations, disappointing analysts.

The fast food giant is losing customers who earn less than $45,000/year due to price hikes. McDonald’s was previously an ultra-affordable option but has taken heavy criticism for its Big Mac meal priced nearly $18. Customers have turned to home cooking as inflation eases and grocery costs drop, becoming more affordable than McDonald’s.

Restaurant analyst also mentioned McDonald’s plans for prices to continue to increase. The company’s cost could potentially rise 2-3% despite backlash over high prices and reviews from low-income customers.

McDonald’s could be facing stronger headwinds due to consumers turning to home cooking as an affordable alternative. Leadership boasted that struggling consumers would turn to McDonald’s for affordability, yet CEO reports that difficult economic times have brought minimal business benefit to the chain.

The company is also facing backlash over its perceived pro-Israeli stance amid the Middle East crisis, contributing to a “meaningful business impact”. Protests and boycotts affecting popular fast-food chains including Starbucks have led to reduced sales and traffic in the Middle East.



Read more: McDonald’s CEO Chris Kempczinski is promising ‘attention to affordability’ after the price of Big Mac meals hits $18