McDonald’s CEO said that the chain will be focusing on affordability going into the new year as customers have been frustrated over prices.
“I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability,” CEO Chris Kempczinski said an earnings call Monday, according to USA Today.
Kempczinski said that some of the concerns over McDonald’s fourth quarter results of because of the global market, ABC News reported. Specifically, it’s the impact of what is going on in the Middle East and Muslim areas.
McDonald’s reported “strong average check growth driven by strategic menu price increases,” in the United States, according to Kempczinski per “Good Morning America.” The company reportedly saw a drop in lower-income customers.
“Eating at home has become more affordable,” Kempczinski said. “The battleground is certainly with that low-income consumer.”
The CEO said that some customers are choosing to not eat out at places like McDonald’s because of inflation.
“What you’re going to see is more attention to affordability,” he said, according to “Good Morning America.” “Think about that as an absolute price point, which is more important for that consumer to get them into the restaurants than maybe value messaging. We are set up well to go after that.”
Lately, prices of groceries have continued to remain high. Grocery costs rose 1.3% overall last year and dining out rose by 5.2%, according to the latest Consumer Price Index report per CNN.
“Even though we’re pushing through pricing, the consumer is tolerating it well,” he said in an October analyst call, according to CNN. No information was released about when the price cuts would happen or how many price cuts would be involved.
McDonald’s did not comment on what items would get a price cut to CNN but did say that they are working to provide affordable food options for its customers.
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