McDonald’s sales rise despite industrywide lower-income consumer pullback

Core Insights - McDonald's is struggling to attract lower-income consumers, while higher-income consumers are increasing their visits, leading to a 2.4% increase in U.S. same-store sales in Q3, driven by check growth [1][2] - The CEO highlighted the company's ability to achieve sustainable growth despite a challenging economic environment, with a bifurcated U.S. economy expected to persist into 2026 [2] - Traffic among lower-income consumers has decreased by double digits, while traffic among higher-income consumers has increased by double digits [2] Economic Environment - The pressures faced by low-income consumers include high rents, food prices, and childcare costs, contributing to significant inflation that affects their spending behavior [3] - The company anticipates that until low-income consumers feel relief in their cost of living and see real income growth, significant changes in their spending patterns are unlikely [3] Strategic Initiatives - McDonald's has relaunched its Extra Value Meals (EVM) program to attract more customers, which includes eight meal offerings and aims to generate traffic in a value-focused environment [3][4] - The company is optimistic about the EVM program's performance, expecting sales lift and traffic improvements as awareness increases over the coming quarters [4] - A beverage test involving 500 restaurants in Colorado and Wisconsin has yielded initial results that exceeded expectations, featuring popular items like cold coffees and crafted sodas [5]