Core Insights - McDonald's is revising its franchising standards to evaluate franchisees on their pricing effectiveness, starting January 1, 2026, in response to cost-conscious consumer behavior [1][2][3] Group 1: Franchising Standards - The new standards aim to enhance accountability for value leadership across all segments, ensuring consistent value delivery in customer experience [2][3] - Franchisees currently set their own menu prices, with input from external pricing consultants, but will now be assessed on how well they deliver value [2][3] Group 2: Consumer Behavior - There has been a noted decline in spending among lower-income diners, leading to less frequent visits since late 2023 [3][4] - McDonald's has introduced value-led offers in key markets, including the US, France, and Germany, to address this issue [3] Group 3: Financial Performance - For the quarter ending September 30, 2025, McDonald's reported a 3.6% increase in global comparable sales, indicating some resilience despite consumer financial strain [3] Group 4: Franchisee Relations - CEO Chris Kempczinski expressed caution regarding consumer health in the US and major international markets, anticipating continued financial pressures into 2026 [4] - Tensions exist between some franchisees and McDonald's corporate leadership, particularly regarding the new franchising standards [4][5] Group 5: Support for Franchisees - An independent advocacy group has called for McDonald's to help fund discounts to ensure franchisees can remain financially viable [5] - The company is investing in tools to assist franchisees in structuring their value propositions effectively in local markets [6][7]