McDonald's is seeing a slump in sales. It could be a bad sign for the economy — but it may be good news for your wallet. Here's how the fast-food giant plans to sweeten the deals

McDonald's is one of the most iconic American brands out there, and it's done well through times of uncertainty — including during the COVID-19 pandemic, when it was easily able to pivot to delivery and takeout thanks to technology investments it’d been making for years.

That's why it's such a troubling sign that the brand has been performing poorly.

"While we anticipated a challenging environment in 2024, our performance so far this year has fallen short of our expectations," CEO Chris Kempczinski said in the company's Q3 2024 earnings call, reported TheStreet .

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Kempczinski blames the company's underperformance partly on the observation that "many consumers, particularly those with lower incomes, have been opting to dine at home more frequently." He noted that this shift is seen across the entire industry.

Nevertheless, he thinks that a portion of the issue could stem from McDonald's having "strayed off course and relinquished a significant aspect of its brand identity to competitors."

Kempczinski’s concerns regarding McDonald's hold significance due to their broader implications for the overall economy. However, patrons of McDonald's ought to also reflect on how these remarks could indicate potential changes in the price of their beloved quick-service dishes.

Subpar performance at McDonald's might indicate a struggling economy.

The decline at McDonald's holds significance for everyone It’s important to notice that the decrease in sales—particularly among those with lower incomes—might indicate that individuals currently lack the financial means to dine out, even at budget-friendly spots such as McDonald's.

The information supports this claim. As noted in a report by PYMNTS uncovered that 98% of individuals living from one paycheck to the next have altered their habits to cope with increasing restaurant costs, which includes dining out less frequently or opting for cheaper options on the menu instead.

This probably isn't a surprise to most people who have been coping with economic uncertainty in recent years.

Following the pandemic, inflation reached heights not seen in decades. Essentials like food and energy experienced particularly significant price hikes, causing considerable distress among consumers.

Actually, according to the Pew Research Center, 63% of Americans said that inflation was a major concern. "very big problem," In 2025, this aspect significantly influences how individuals view the economy as a whole, with 45% of respondents indicating that the economy is merely in decent condition and 31% characterizing it as poor.

Unfortunately, the repercussions of financially troubled customers reach further than just affecting McDonald's earnings.

“Restaurants serve as a barometer,” Michael Halen, a senior restaurant and foodservice analyst at Bloomberg Intelligence, stated. told Marketplace in 2024.

Generally speaking, you notice a decrease in consumer discretionary spending at restaurants earlier than you do in other areas.

Should there be an overall decrease in consumers' expenditures, this heightens the possibility of a downturn since lower demand prompts businesses to scale down operations. This scaling-down may result in higher joblessness and additional reductions, ultimately hindering economic expansion.

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McDonald's is emphasizing affordability, which means the cost for you might drop soon.

While McDonald's problems may indicate a reason to worry about the economy as a whole, there is a little bit of good news. Kempczinski has said the fast-food chain is going to shift its focus back to providing the best value for customers so people will feel like eating there is within reach — even while overall economic conditions aren't great.

"We acted swiftly in collaboration with our franchisees to enhance our value propositions across most of our key markets," Kempczinski stated.

The instances he mentioned encompass discounted Happy Meals in France, three-for-£3 meal deals in the UK, and a dollar coffee in Canada.

"We've mentioned this previously; we consider good value to encompass not only entry-level products but also affordable meal combos," Kempczinski clarified.

These include Everyday Affordably Priced Meal Options featuring “attractive starting prices” such as those offered for breakfast items along with options like beef and chicken sandwiches served during lunch and dinner hours.

McDonald's is not The sole quick-service restaurant aiming to attract the constrained amount of money individuals are willing to part with.

Wendy's has launched a $3 breakfast option, and Jack in the Box also intends to introduce more affordable menu choices.

"Value will be an ongoing topic of discussion for us throughout this year," said Jack in the Box CEO Darin Harris to investors in 2024, as reported. Restaurant Business , as a slowdown in fast-food consumption began to appear.

We see our competitors are doing this, so we'll definitely join the fray.

Therefore, as McDonald's emphasizes that it remains budget-friendly during tough economic periods, more individuals might begin visiting the Golden Arched establishments seeking deals—despite overall financial circumstances making them feel somewhat financially constrained.

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The content of this article serves solely as information and must not be interpreted as professional advice. No warranties or guarantees of any sort are made regarding this material.

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