""We continue to see a bifurcated consumer base with [quick-service restaurant] traffic from lower-income consumers declining nearly double digits in the third quarter, a trend that's persisted for nearly two years," McDonald's CEO Chris Kempczinski said on the company's November 5 earnings call. "In contrast, QSR traffic growth among higher-income consumers remained strong, increasing nearly double digits in the quarter.""
""Right now, you're seeing across the country, rents are at pretty high levels. You're seeing food prices, whether it's in restaurants or grocery, you're seeing food prices are high, you're seeing child care is high," he said. "So long as that consumer cohort is feeling like real incomes are under pressure, I wouldn't expect to see significant change there.""
Recent earnings from fast food and fast casual chains show lower-income consumers cutting back on quick-service restaurant (QSR) visits while higher-income consumers increase visits. McDonald's reported QSR traffic from lower-income consumers declined nearly double digits in the third quarter, while higher-income traffic rose nearly double digits. High rents, elevated food prices in restaurants and grocery, and costly child care are squeezing real incomes and are expected to keep pressure on low-income cohorts into 2026. Chipotle and Cava cited pullbacks among 25-to-34-year-olds, a demographic facing higher unemployment and renewed student loan repayments. Overall patterns point to weakening job growth and constrained spending at the lower end.
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