McDonald's CEO Kempczinski expects prolonged high inflation — CNBC
In the United States, McDonald's CEO Chris Kempczinski said that high inflation and a lack of growth in visitor numbers will continue to weigh on the restaurant industry. He said this on the Squawk on the Street program, CNBC reports.
According to Kempczinski, the company no longer views the current conditions as merely a temporarily difficult environment, as it does not expect rapid changes. He noted that inflation remains persistent not only in the United States but also in other countries.
Decline in traffic
In the most recent quarter, McDonald's sales in the United States at restaurants operating for at least one year rose by only 0.8%, while traffic at the chain's locations in the country declined. Consumers have been eating out less often in response to higher menu prices and rising fuel and food costs.
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Restaurant operators surveyed by the National Restaurant Association reported a net decline in customer traffic in every month from August 2025 through July 2026, with the exception of one month.
Costs and prices
To attract customers, McDonald's and its competitors are making more active use of discounts. At the same time, restaurant operators themselves are facing rising costs: beef prices in the company's largest markets have nearly doubled over the past five years, while labor and construction costs have also increased.
Kempczinski did not rule out further price adjustments, but stressed that the chain needs to avoid steps that could drive visitors away. He also reiterated the company's assessment that McDonald's raised prices too quickly after the Covid-19 pandemic. Kempczinski and other company executives were expected to present more detailed plans to increase market share during the investor day on Wednesday.
