Latest news with #ChristopherKempczinski
Malay Mail
2 days ago
- Business
- Malay Mail
Big Macs selling, but US$10 meals spook struggling US diners
NEW YORK, Aug — McDonald's profits rose in the second quarter behind a rebound in US sales but executives said Wednesday that low-income consumers remained under economic stress. The fast-food chain notched a 2.5-per cent rise in US comparable sales after the same benchmark shrunk by 3.6 per cent in the first quarter. McDonald's Chief Executive Christopher Kempczinski described the US consumer base as 'bifurcated,' with weakness in low-income consumers a reason for lingering caution on the outlook, he said at the outset of an earnings conference call. Later, in response to an analyst question, Kempczinski said 'real incomes are down' for this population despite higher wages. 'There's a lot of anxiety and unease with that low-income consumer,' Kempczinski said. 'I think we could all speculate the reasons for that, probably tariffs and the impact that might have, be questions around the employment situation.' People are either skipping meals like breakfast, 'or they're trading down, either within our menu or they're trading down to eating at home,' he said. In terms of the results, McDonald's reported an 11-per cent rise in profits to US$2.3 billion, while revenues increased five per cent to US$6.7 billion. Global comparable sales increased 3.8 per cent. Executives pointed to strength in Japan, while promotions in Germany for the Chicken Big Mac and France for the Big Arch burger also boosting demand. McDonald's has also unveiled meal promotions in the United States such as the US$5 Meal Deal and the Snack Wrap for US$2.99. However, executives said they were still working to implement the offering throughout its network. US franchisees have sometimes resisted such promotions because of profit concerns. 'Too often' consumers may drive up to a McDonald's 'and you're seeing combo meals that could be priced over US$10 and that absolutely is shaping value a negative way,' Kempczinski said. 'We've got to get that fixed,' he said, adding that the company is holding 'active and productive' conversations with franchisees. Shares of McDonald's jumped 3.0 per cent near midday. — AFP
Japan Today
2 days ago
- Business
- Japan Today
McDonald's sees U.S. rebound but says low-income diners remain stressed
McDonald's said it is working with franchisees to implement promotions throughout its US network McDonald's profits rose in the second quarter behind a rebound in U.S. sales but executives said Wednesday that low-income consumers remained under economic stress. The fast-food chain notched a 2.5-percent rise in U.S. comparable sales after the same benchmark shrunk by 3.6 percent in the first quarter. McDonald's Chief Executive Christopher Kempczinski described the U.S. consumer base as "bifurcated," with weakness in low-income consumers a reason for lingering caution on the outlook, he said at the outset of an earnings conference call. Later, in response to an analyst question, Kempczinski said "real incomes are down" for this population despite higher wages. "There's a lot of anxiety and unease with that low-income consumer," Kempczinski said. "I think we could all speculate the reasons for that, probably tariffs and the impact that might have, be questions around the employment situation." People are either skipping meals like breakfast, "or they're trading down, either within our menu or they're trading down to eating at home," he said. In terms of the results, McDonald's reported an 11-percent rise in profits to $2.3 billion, while revenues increased five percent to $6.7 billion. Global comparable sales increased 3.8 percent. Executives pointed to strength in Japan, while promotions in Germany for the Chicken Big Mac and France for the Big Arch burger also boosting demand. McDonald's has also unveiled meal promotions in the United States such as the $5 Meal Deal and the Snack Wrap for $2.99. However, executives said they were still working to implement the offering throughout its network. U.S. franchisees have sometimes resisted such promotions because of profit concerns. "Too often" consumers may drive up to a McDonald's "and you're seeing combo meals that could be priced over $10 and that absolutely is shaping value a negative way," Kempczinski said. "We've got to get that fixed," he said, adding that the company is holding "active and productive" conversations with franchisees. © 2025 AFP
Eyewitness News
3 days ago
- Business
- Eyewitness News
McDonald's sees US rebound but says low-income diners remain stressed
NEW YORK - McDonald's profits rose in the second quarter behind a rebound in US sales but executives said Wednesday that low-income consumers remained under economic stress. The fast-food chain notched a 2.5% rise in US comparable sales after the same benchmark shrunk by 3.6% in the first quarter. McDonald's Chief Executive Christopher Kempczinski described the US consumer base as "bifurcated," with weakness in low-income consumers a reason for lingering caution on the outlook, he said at the outset of an earnings conference call. Later, in response to an analyst question, Kempczinski said "real incomes are down" for this population despite higher wages. "There's a lot of anxiety and unease with that low-income consumer," Kempczinski said. "I think we could all speculate the reasons for that, probably tariffs and the impact that might have, be questions around the employment situation." People are either skipping meals like breakfast, "or they're trading down, either within our menu or they're trading down to eating at home," he said. In terms of the results, McDonald's reported an 11% rise in profits to $2.3 billion, while revenues increased five percent to $6.7 billion. Global comparable sales increased 3.8%. Executives pointed to strength in Japan, while promotions in Germany for the Chicken Big Mac and France for the Big Arch burger also boosting demand. McDonald's has also unveiled meal promotions in the United States such as the $5 Meal Deal and the Snack Wrap for $2.99. However, executives said they were still working to implement the offering throughout its network. US franchisees have sometimes resisted such promotions because of profit concerns. "Too often" consumers may drive up to a McDonald's "and you're seeing combo meals that could be priced over $10 and that absolutely is shaping value a negative way," Kempczinski said. "We've got to get that fixed," he said, adding that the company is holding "active and productive" conversations with franchisees. Shares of McDonald's jumped 3.0% near midday.
Yahoo
3 days ago
- Business
- Yahoo
McDonald's sees US rebound but says low-income diners remain stressed
McDonald's profits rose in the second quarter behind a rebound in US sales but executives said Wednesday that low-income consumers remained under economic stress. The fast-food chain notched a 2.5-percent rise in US comparable sales after the same benchmark shrunk by 3.6 percent in the first quarter. McDonald's Chief Executive Christopher Kempczinski described the US consumer base as "bifurcated," with weakness in low-income consumers a reason for lingering caution on the outlook, he said at the outset of an earnings conference call. Later, in response to an analyst question, Kempczinski said "real incomes are down" for this population despite higher wages. "There's a lot of anxiety and unease with that low-income consumer," Kempczinski said. "I think we could all speculate the reasons for that, probably tariffs and the impact that might have, be questions around the employment situation." People are either skipping meals like breakfast, "or they're trading down, either within our menu or they're trading down to eating at home," he said. In terms of the results, McDonald's reported an 11-percent rise in profits to $2.3 billion, while revenues increased five percent to $6.7 billion. Global comparable sales increased 3.8 percent. Executives pointed to strength in Japan, while promotions in Germany for the Chicken Big Mac and France for the Big Arch burger also boosting demand. McDonald's has also unveiled meal promotions in the United States such as the $5 Meal Deal and the Snack Wrap for $2.99. However, executives said they were still working to implement the offering throughout its network. US franchisees have sometimes resisted such promotions because of profit concerns. "Too often" consumers may drive up to a McDonald's "and you're seeing combo meals that could be priced over $10 and that absolutely is shaping value a negative way," Kempczinski said. "We've got to get that fixed," he said, adding that the company is holding "active and productive" conversations with franchisees. Shares of McDonald's jumped 3.0 percent near midday. jmb/des
France 24
3 days ago
- Business
- France 24
McDonald's sees US rebound but says low-income diners remain stressed
The fast-food chain notched a 2.5-percent rise in US comparable sales after the same benchmark shrunk by 3.6 percent in the first quarter. McDonald's Chief Executive Christopher Kempczinski described the US consumer base as "bifurcated," with weakness in low-income consumers a reason for lingering caution on the outlook, he said at the outset of an earnings conference call. Later, in response to an analyst question, Kempczinski said "real incomes are down" for this population despite higher wages. "There's a lot of anxiety and unease with that low-income consumer," Kempczinski said. "I think we could all speculate the reasons for that, probably tariffs and the impact that might have, be questions around the employment situation." People are either skipping meals like breakfast, "or they're trading down, either within our menu or they're trading down to eating at home," he said. In terms of the results, McDonald's reported an 11-percent rise in profits to $2.3 billion, while revenues increased five percent to $6.7 billion. Global comparable sales increased 3.8 percent. Executives pointed to strength in Japan, while promotions in Germany for the Chicken Big Mac and France for the Big Arch burger also boosting demand. McDonald's has also unveiled meal promotions in the United States such as the $5 Meal Deal and the Snack Wrap for $2.99. However, executives said they were still working to implement the offering throughout its network. US franchisees have sometimes resisted such promotions because of profit concerns. "Too often" consumers may drive up to a McDonald's "and you're seeing combo meals that could be priced over $10 and that absolutely is shaping value a negative way," Kempczinski said. "We've got to get that fixed," he said, adding that the company is holding "active and productive" conversations with franchisees. Shares of McDonald's jumped 3.0 percent near midday.
