Last quarter, McDonald's was one of the few fast-food chains to warn that it was seeing some low-income consumers trade down to cheaper meals. Investors will be watching to see if the trend worsens, particularly in the company's home market. Wall Street is expecting U.S. same-store sales growth of 2.8%, according to StreetAccount estimates.
The company is also facing pushback at home from many of its U.S. franchisees over proposed changes to ownership terms and its grading system for operators. An overwhelming majority of franchisees surveyed by the National Owners Association, an independent advocacy group for McDonald's operators,in McDonald's CEO Chris Kempczinski and Joe Erlinger, the company's U.S. President .
Outside the U.S., analysts are predicting strong sales growth as many international markets rebound from the pandemic. But the war in Ukraine has led to concerns that Europe could face a slowdown as gas and food prices spike. McDonald's said last quarter that European consumer behavior hadn't changed.