McDonald’s Corp. reported slowing sales growth as value-focused promotions failed to fully offset pressure on lower-income consumers, signaling continued strain in demand for fast food across the United States.
The fast-food giant said U.S. same-store sales rose more slowly than analysts had anticipated, as budget-conscious diners cut back on discretionary spending amid persistent cost pressures. The results underscore the challenge McDonald’s faces in drawing traffic even as it leans heavily on discounted meal deals.
The company has spent much of the past year deploying value offerings designed to win back price-sensitive customers, a strategy that included extending its $5 value meal and rolling out other limited-time promotions. Executives have said such deals are central to rebuilding foot traffic, but the latest figures suggest they have not been enough to reverse the slowdown.
McDonald’s has been contending with a squeeze on lower-income households in particular, a group that has pulled back on dining out as everyday expenses remain elevated. The trend echoes weakness reported earlier in the year, when the company saw U.S. traffic decline sharply in the first quarter.
Alongside the earnings update, the company named a new head of its U.S. business, a leadership change that comes as it works to stabilize its largest market and reinvigorate customer visits.
The broader restaurant sector has faced similar headwinds, with consumers becoming more selective about where and how often they eat out. Elevated menu prices, accumulated over several years of inflation, have pushed some customers toward cooking at home or seeking cheaper alternatives.
Despite these challenges, McDonald’s continues to command significant scale and pricing power, and the company has emphasized that its value platform remains a long-term priority. The chain has also pointed to international markets as a source of relative strength.
Looking ahead, investors will watch whether the new U.S. leadership and expanded value offerings can translate into stronger traffic in the coming quarters, particularly if pressure on lower-income households persists.