McDonald's is struggling to hold on to its low-income customers
Lower-income customers aren’t finding much value in the menu at McDonald’s these days.
Traffic within the cohort dropped “nearly double digits” in its latest quarter, chief executive Christopher Kempczinski told investors in an earnings call Wednesday, a trend across the industry. These customers are disproportionately feeling the strain of mounting economic pressures, including higher prices on groceries and apparel as well as the growing cost of rent and child care, he said.
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Meanwhile, traffic among higher-income customers continues to grow across the sector, increasing “nearly double digits” in the quarter, he said. The chain’s same-store sales grew 2.4 percent in the United States over last year, a slight decline from the last quarter’s 2.5 percent, and increased 3.6 percent globally. Overall sales hit $36 billion, an 8 percent growth year-over-year. Its stock price was up 2 percent midday Wednesday.
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Chipotle chief executive Scott Boatwright told investors last week that “the gap has widened” among its customers, with those in households earning below $100,000 - which represents about 40 percent of the chain’s total sales - eating at the fast-food restaurant less frequently.
https://finance.yahoo.com/news/mcdonald-struggling-hold-low-income-165558256.html
I find if I don't have time to cook it's cheaper to pick up something at my local grocer's deli than a fast food restaurant.
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