McDonald’s Beefs Up Value as Rising Gas Prices Drain Customers’ Wallets
Global same-store sales rose 3.8%, but McDonald’s said elevated gas prices and war anxiety could pressure lower-income diners this spring.
- On Thursday, McDonald reported global same-store sales rose 3.8% in the first quarter, surpassing Wall Street's 3.7% forecast with revenue hitting $6.52 billion.
- Rising gas prices reached $4.55 on Thursday according to AAA, up 44% year-over-year, while consumer anxiety over the Iran war threatens sales for lower-income customers.
- The Chicago chain net income rose 6% to $1.98 billion, while adjusted earnings reached $2.83 per share, beating analysts' $2.74 forecast.
- CEO Chris Kempczinski said the company is emphasizing value with 10 items for less than $3 since April 21, balancing premium offerings like The Big Arch burger.
- Same-Store sales fell in April partly due to last year's popular Minecraft meal; Kempczinski said it is too early to assess May performance, though a new beverage lineup launched this week.
20 Articles
20 Articles
McDonald’s Beefs Up Value as Rising Gas Prices Drain Customers’ Wallets
Despite spiking energy prices from the Iran war, the S&P 500 has climbed 11% in the past month, much to Wall Street’s delight. It’s a different story on Main Street, however. The latest evidence: McDonald’s, which said Thursday that, when it comes to rising gas prices at the pump, customers are decidedly not loving it. Running Out of Gas First, the good news. In the first quarter, McDonald’s managed better-than-expected revenue (up 9% from last…
McDonald’s reported on Thursday a significant growth in its profits during the first quarter of 2026, driven by aggressive price promotions and marketing campaigns inspired by pop culture that has managed to attract low-income consumers. First quarter profits were $2 billion, 6% more than in the same period the previous year, while revenues amounted to 9% to $6.5 billion. On the other hand, global comparable sales increased by 3.8%. “The consume…
McDonald's posts better-than-expected first quarter sales. But higher gas prices threaten demand
“Clearly, when you have elevated gas prices... that is going to disproportionately impact low-income consumers," McDonald's Chairman and CEO Chris Kempczinski said.
Pittsburgh Post-Gazette
McDonald's focus on value lifts first-quarter sales, but company says gas prices could dent demand
McDonald’s posted better-than-expected sales in the first quarter but said high gas prices and consumer anxiety over the Iran war could dent sales...
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