McDonald’s Chief Executive Officer Chris Kempczinski spoke at the Boston College Chief Executives Club event on Thursday, sounding the alarm that low-income customers will remain under strain through the end of the year and into early 2025.
“We’re starting to talk about 2025, and my message to our teams has been: ‘We need to be preparing for another challenging year,'” Kempczinski told the audience, adding, “We need to be making sure that we’ve got a really strong value proposition in all of our markets.”
In June, MCD rolled out the $5 meal deal in response to low/mid-tier customers struggling under the failed Bidenomics era (elevated inflation and high interest rates). This deal, which allows customers to pick the following items: a McDouble or McChicken sandwich or 4-piece Chicken McNuggets, a small fry, and a small soft drink, has been well received by customers and was recently just extended through the end of the year.
Kempczinski commented on the limited-time $5 meal deal, noting that MCD will likely revamp its value offerings.
This comes as MCD reported in July its first quarterly same-store sales drop in nearly four years amid a slowdown in customer spending.
The latest consumer data we’ve shared with readers shows that working-poor households are cracking.
Consumers Crack: Credit Card Debt Suddenly Plunges Most Since Covid As APRs Hit Record High https://t.co/ojSaHAYLXb
— zerohedge (@zerohedge) October 7, 2024
As we’ve previously noted, values wars among fast-food chains are heating up:
- McDonald’s Admits Consumers Are Broke With Planned Reintroduction Of $5 Meal Deal
- First McDonald’s, Now Burger King Admits Consumers Are Broke With Planned Reintroduction Of $5 Meal Deal
- KFC Unveils’ Finger-Lickin Good’ Meal Deal As Value Wars Heat Up
- McDonald’s Meal Deal Extends Into December As Core Customers Under Pressure
MCD CEO also said, “It’s easier to deliver value on chicken products than it is on beef products.”
And we wonder why? …
One of the big themes this year has been low/mid-tier households faltering under the weight of elevated inflation and high interest rates.
The latest consumer note from Goldman reveals a new survey of 2,000 consumers. It shows many consumers have been pushed into value-seeking mode because of the mounting macroeconomic headwinds.
All in all, remember that VP Harris pushed disastrous Bidenomics to the extreme.
R group Restoration PAC is up on TV in battleground states and nationally with this spot targeted at Black voters —
Clip of woman in Philadelphia:
“They are killing us without killing us”
Clip of Kamala Harris:
“That is called Bidenomics” pic.twitter.com/5pndQdgAP5
— Medium Buying (@MediumBuying) October 6, 2024
You hear that consumers… Harris wouldn’t have changed a damn thing.
If you think four more years of Harris won’t mean the same high gas prices, inflation, open borders, and crime, I’ve got oceanfront property in Oklahoma to sell you!
Kamala Harris admitted she wouldn’t change a thing from Biden’s disastrous policies. pic.twitter.com/8cIKigt0lQ
— Randy Weber (@TXRandy14) October 8, 2024
Economic conditions for the working poor will only get more challenging through the end of the year. MCD reports third-quarter earnings on Oct. 29. The lingering problem for consumers is an energy price shock at the pump could materialize if Israel begins bombing Iran’s crude oil export facilities. Consumers need to buckle up.
Tyler Durden
Fri, 10/11/2024 – 12:30
