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McDonald’s Value Strategy Faces Consumer Resistance Amid Economic Pressures
McDonald’s Value Strategy Faces Consumer Resistance Amid Economic Pressures
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BTCCSquare news:
McDonald’s, the fast-food giant with a global footprint of over 43,000 restaurants, is grappling with softening consumer demand as inflationary pressures weigh on discretionary spending. U.S. comparable sales ROSE a modest 2.5% in recent quarters, while European margins contracted—reflected in the stock’s muted 4% year-to-date gain.
The company’s aggressive value-centric initiatives, including $1 menu items and $5 meal deals, initially buoyed systemwide sales growth of 6%. Yet sustaining momentum proves challenging as shrinking average check sizes and macroeconomic headwinds dampen same-store performance. CEO Chris Kempczinski’s emphasis on "compelling value and menu innovation" now confronts the reality of consumer trade-down behavior.
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