McDonald’s is losing its lowest-income customers—and it’s not hard to see why

Core Insights - McDonald's latest earnings report highlights a growing divide among U.S. consumers, with wealthier Americans continuing to dine out while lower-income families are opting to eat at home due to rising living costs and stagnant wages [1][3] Financial Performance - McDonald's U.S. same-store sales increased by 2.5% year-over-year, while global sales rose by 3.6%, although adjusted earnings per share (EPS) of $3.22 fell short of analyst expectations of $3.32 [1] - The company's revenue for the quarter was reported at $7.1 billion [1] Consumer Trends - There is a noticeable decline in quick-service restaurant (QSR) traffic among lower-income consumers, with a drop of nearly double digits in the third quarter, a trend that has persisted for almost two years [3] - Conversely, QSR traffic among higher-income consumers has shown strong growth, increasing by nearly double digits during the same period [3] Strategic Initiatives - To address the challenging economic environment, McDonald's plans to focus on delivering everyday value, menu innovation, and compelling marketing to attract customers [3] - The company is reintroducing extra-value meals, such as a $5 Sausage, Egg & Cheese McGriddles meal and an $8 10-piece Chicken McNuggets meal, starting in November [3] - Additionally, McDonald's has brought back the promotional game Monopoly in the U.S. for the first time in nearly a decade, emphasizing digital engagement [3]