Cheeseburger, please! As one of the oldest QSR brands in the business, McDonald’s, navigates a price conscious consumer and an inflationary environment at a critical time as tech is changing instore operations from AI to Robotics. One thing that is unique across the sector is that sales from higher income guests has increased by double digits. Value is value and McD’s is an affordable price point and provides value for all. With over 13,600 units across the U.S., McDonalds remains one of the largest owners of real estate in the country and works to utilize their brick-and-mortar footprint to grow their business and remain relevant in an ever-changing restaurant landscape.
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McDonald’s CEO Chris Kempczinski has acknowledged that the restaurant industry faces ongoing challenges, with inflation expected to remain above average through 2026. The decline in low-income consumers, driven by economic pressures such as rising costs of rent, childcare, and groceries, continues to impact sales across the quick-service restaurant segment. Despite these headwinds, McDonald’s reported a 3.6% increase in global same-store sales in Q3, driven by strong performances in both the U.S. and international markets. The company emphasizes the importance of providing value through strategic menu offerings, discounts, and promotions like Extra Value Meals, which aim to bolster customer perception of affordability and drive traffic, especially among lower-income consumers.
Looking ahead, McDonald’s is focused on maintaining momentum through a combination of value-driven initiatives, digital engagement, and innovative marketing campaigns. The reintroduction of Monopoly in the U.S. and targeted beverage offerings is expected to boost app downloads, loyalty, and incremental sales across different dayparts. The company is also being deliberate in pricing new beverage items to ensure they deliver value relative to competitors. Despite challenging economic conditions, McDonald’s remains optimistic about continued growth across its global segments, emphasizing the importance of executing strong value, marketing, and menu strategies simultaneously to sustain performance and strengthen consumer loyalty.
To read more, click the link below:
McDonald’s Remains Laser-Focused on Winning Value Wars – QSR Magazine
About The Author: Jeff Dervech
Jeff Dervech is a Tampa local commercial real estate agent, specializing in the arena of retail strip center and shopping centers.
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