McDonald’s navigated a quarter of robust sales growth while warning that headwinds from high gasoline prices and geopolitical uncertainty could weigh on the very customers its value‑focused menu is designed to attract. Global same‑store sales rose 3.8% during January through March, narrowly exceeding the 3.7% consensus forecast of analysts polled by FactSet. Revenue climbed 9% to $6.52 billion, and adjusted earnings per share reached $2.83 — all comfortably above Wall Street’s estimates.
The chain’s strategy of leaning into value resonated with cash‑strapped consumers. CEO Chris Kempczinski told investors Thursday that meal deals and a freshly launched selection of ten items priced under $3 are bringing lower‑income customers back into stores. Yet the effort has not reversed a broader slump: visits by households earning $45,000 or less are still falling, and the squeeze is likely to tighten.
“Clearly, when you have elevated gas prices… that is going to disproportionately impact low‑income consumers,” Kempczinski said during the company’s conference call. “And so we expect the pressures there are going to continue.”
The average U.S. gasoline price stood at $4.55 a gallon on Thursday, a 44% leap from the same period a year earlier, according to AAA. The jump compounds the strain on the very families McDonald’s is trying to keep in its dining rooms, and Kempczinski acknowledged that broader consumer anxiety — including the fallout from the Iran war — could further erode traffic. “Certainly consumer sentiment is heightened anxiety, let’s just say, and it may have an impact,” he said. “But, you know, our focus is on controlling what we can control.”
April same‑store sales slipped in the U.S. and several international markets, a decline executives attributed largely to the tough comparison with the viral Minecraft meal promotion that juiced results a year ago. Kempczinski cautioned it was too early to gauge the trajectory for May and June, though the company hopes a new beverage lineup launched this week in the U.S. will spark renewed customer interest.
McDonald’s has been systematically reworking its value equation. In September, it slashed prices on U.S. combo meals, and starting April 21, stores began offering ten menu items priced below $3. Kempczinski described the two‑pronged approach — meal deals to drive excitement around core products plus “entry‑level price points for those folks who are maybe a little bit more stressed around affordability and are looking for, you know, ‘What can I get for $3 or less?’” — as the winning formula based on experiences in Germany and Australia.
Amid the value push, the chain also generated buzz with the Big Arch burger, a 1,020‑calorie behemoth that launched in March and became a viral sensation after Kempczinski posted a video of himself taking a tentative bite. The clip drew widespread mockery and a mocking response from Burger King’s president, Tom Curtis, who filmed himself chomping into a rival Whopper with gusto. Still, with the Big Arch priced above $8 in many markets, the company is betting that its combination of blockbuster specials and sub‑$3 everyday items can sustain momentum in an environment where consumer budgets are being stretched thin.