McDonald's CEO , Talks Affordability , After Stock Prices Drop.
ABC reports that McDonald's has come under fire by customers angry over recent increased menu prices, which has prompted the CEO to address the issue of affordability.
In the company's latest earnings call, McDonald's CEO Chris Kempczinski discussed the fast food chain's Q4 results, which were mixed.
In the company's latest earnings call, McDonald's CEO Chris Kempczinski discussed the fast food chain's Q4 results, which were mixed.
Global same-store sales were up 3.4%, short of Wall Street expectations, while domestic same-store sales were up 4.3%, more closely aligned with "normalized growth.".
Shares in McDonald's dropped nearly 4% on the New York Stock Exchange after the company's Q4 earnings were posted.
Shares in McDonald's dropped nearly 4% on the New York Stock Exchange after the company's Q4 earnings were posted.
Kempczinski reportedly admitted that the company's sales had dipped in the wake of increased menu prices.
The fast-food chain noted reduced transactions among lower-income customers making under $45K a year, one of the company's core consumers.
Eating at home has become more affordable.
The battleground is certainly with that low-income consumer, Chris Kempczinski, McDonald's CEO, via ABC.
According to Kempczinski, customers may have been forced to dine out less as prices and inflation remain high for eating out.
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According to Kempczinski, customers may have been forced to dine out less as prices and inflation remain high for eating out.
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The CEO stressed that the company remains in a good position with its value menu offerings, while promising , "some activity at the local level to make sure we continue to provide value for the lower-income consumer.".
What you're going to see is more attention to affordability.
Think about that as an absolute price point, which is more important for that consumer to get them into the restaurants than maybe value messaging.
We are set up well to go after that, Chris Kempczinski, McDonald's CEO, via ABC.
What you're going to see is more attention to affordability.
Think about that as an absolute price point, which is more important for that consumer to get them into the restaurants than maybe value messaging.
We are set up well to go after that, Chris Kempczinski, McDonald's CEO, via ABC
