McDonald’s is reconsidering its pricing strategy after the fast-food giant reported its first sales slump since 2020 in the second quarter. Experts said budget-conscious Americans are eating at home more often due to higher prices at fast food chains.
“This shortfall was driven by sluggish traffic, with consumers shifting a larger share of meal occasions toward grocery stores,” Morningstar equity analyst Sean Dunlop said in a research note.
This summer, McDonald’s released a $5 meal promotion to drive more foot traffic, though competitors have also launched similar deals.
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McDonald’s CEO Chris Kempczinski expressed confidence in the company’s strategy, “Accelerating the Arches.” Kempczinski emphasized the focus on reliable, everyday value and strategic growth areas, such as chicken and loyalty programs, especially as consumers become more selective with their spending.
He also said customers can expect more discounts in an effort to bring more people in and stop the sales decline.
