MCD.US CEO warns of softening consumer spending: Company preparing for 'challenges' next year
McDonald's (MCD.US) CEO Chris Kempczinski said on Thursday that he expects low-income customers' wallets to remain tight next year.
"We start talking about 2025, and the message I'm giving to our team is: 'We need to be ready for another challenging year,' " he said at a Boston College CEO Club event, "We need to make sure we have a really strong value proposition in all markets."
The burger chain reported its first quarterly same-store sales decline in four years in July, as consumers reined in spending after years of high inflation. Kempczinski said McDonald's introduced a limited-time $5 menu in June and is considering further improvements to its affordable products. The company's executives previously said they expect consumers to remain under pressure for the next few quarters.
One way to offer more affordable options is chicken, which is cheaper than beef and has become more popular in recent years. Kempczinski said beef is more than double the price of chicken, per pound.
"Chicken products are easier to offer discounts on," Kempczinski said.
McDonald's will report its third-quarter results on Oct. 29.