Inflation is relentlessly high and food prices in particular are soaring. In this environment, customers are turning to McDonald’s — even as the burger chain raises its own prices. In the third quarter, McDonald’s US prices were up about 10% year-over-year on average. Even so, the brand is gaining traction among its less affluent customers, noted CFO Ian Borden during an analyst call Thursday. “We’re gaining share right now among low-income consumers,” he said.
Recession boosts Kempczinski said that McDonald’s is weighing a number of different potential economic situations, but that it is expecting “a mild to moderate recession in the US,” as a base case. “McDonald’s has proven to be successful in just about any business environment,” he noted. The brand has a history of resilience during periods of economic distress. “Our business performed well in that last downturn,” Borden said, referring to the financial crisis of 2008 and 2009.