"For years, dating back to the 2022 inflation wave, McDonald's and its fast-food rivals have contended with shopper frustration over rising menu prices, with combo meals increasingly breaking into double digits. Customers at the higher end of the income spectrum continue to order premium products and use delivery apps at healthy rates. Lower-income diners, however, are cutting back, Kempczinski argued in an interview on CNBC's "Squawk Box," treating fast food less as a daily convenience and more as an occasional splurge."
"Kempczinski was pressed on some political issues by the CNBC anchors, including whether McDonald's fits with HHS Secretary Robert F. Kennedy's MAHA, or "Make America Healthy Again," and the policy around no taxes on tips. Kempczinski said he personally supported the no taxes on tips issue but clarified that it didn't help McDonald's much, as it doesn't allow tips. A tips restaurant requires a minimum wage of"
Chief Executive Chris Kempczinski is slimming down value meal prices to address a widening two-tier economy. Upper-income consumers (earning over $100,000) continue to purchase premium items and use delivery apps at healthy rates. Middle- and lower-income diners are reducing visits, with traffic for those groups down double digits and many skipping breakfast or eating at home. McDonald's has pursued a "value journey" over the past year to make menu options more affordable for cost-sensitive customers. The company notes that menu price inflation since 2022 pushed combo meals into double digits. McDonald's does not allow tipping, so proposed no-taxes-on-tips policies have limited impact on its operations.
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