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☆ McDonald's just admitted that it's too expensive, and it's driving some customers away
▼ + stars: | 2024-07-29 | by ( Grace Dean | ) www.businessinsider.com time to read: +1 min

McDonald's says that high prices have contributed to its falling sales. He said customers are looking for more deals and either buying fewer items per order or cheaper items. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementMcDonald's just admitted that its food is too expensive, contributing to falling sales at the fast-food giant. This story is available exclusively to Business Insider subscribers.

Persons: McDonald's, —, Chris Kempczinski Organizations: Global, Service, Business

☆ The reason why McDonald's stock is soaring despite a big earnings miss: Value meals
▼ + stars: | 2024-07-29 | by ( Kelly Cloonan | ) www.businessinsider.com time to read: +3 min

McDonald's global comparable sales fell 1% year-over-year last quarter, missing analyst estimates. The company plans to focus on value going forward as low income customers grow weary from inflation. McDonald's same-store sales fell 1% in the most recent quarter, marking the first decrease in same-store sales since 2020. Its net income for the quarter fell to $2.02 billion, down from $2.31 billion the year before. Low income customers, in particular, are shying away from fast food as inflation soas.

Persons: —, McDonald's, Chris Kempczinski, Joe Erlinger, Kempczinski Organizations: Service, Consumers Locations: New York, McDonald's, U.S

☆ Americans keep turning their backs on McDonald’s
▼ + stars: | 2024-07-29 | by ( David Goldman | ) edition.cnn.com time to read: +5 min

CNN —Inflation has caught up with McDonald’s, and budget-conscious Americans are looking elsewhere for their fast-food fix. The tough environment for McDonald’s wasn’t limited to the United States: Sales at stores open for at least a year fell 1% globally. The plan focuses on value meal plans like the popular $5 meal introduced earlier this summer. He pointed to McDonald’s new emphasis on chicken, which is now on par with beef sales at restaurants. Whether or not that viral post was the final straw for McDonald’s customers, Americans have been punishing the company ever since.

Persons: McDonald’s, McDonald’s isn’t, Grimace’s, ”, Chris Kempczinski, hadn’t, Kempczinski, “, ” Kempczinski, — Organizations: CNN, Inflation, McDonald’s Locations: Burger, United States, Connecticut

☆ I drove to Chicago to try out McDonald's little-known CosMc's test location. Dunkin Donuts should be on alert.
▼ + stars: | 2024-06-06 | by ( Dominick Reuter | ) www.businessinsider.com time to read: +1 min

McDonald's now has four CosMc's locations open, one near Chicago and three near Dallas. I visited the original Chicago location. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . McDonald's now has four locations open for testing — one near Chicago and three near Dallas — with six more Texas locations slated for this year. "CosMc's is a small format concept with all the DNA of McDonald's but its own unique personality.

Persons: McDonald's, Dunkin, —, Chris Kempczinski Organizations: Service, Dallas, Business Locations: Chicago, Dallas, Dallas —, Texas

The president of McDonald’s USA, Joe Erlinger, pushed back on “inaccurate” reports this week that said the chain had more than doubled its prices on some items over the last decade. But his retort wasn’t exactly reassuring: The average price of a Big Mac is up 21 percent from 2019. Erlinger’s rebuttal underlines the heat that some companies are facing as the news media, politicians and consumers focus on steadily rising prices. Whether persistent price increases reflect price gouging, or simply companies’ own rising costs, is a matter of fierce debate. Either way, one thing is clear: Consumers are becoming fed up.

Persons: Joe Erlinger, McDonald’s, Chris Kempczinski Organizations: McDonald’s, Starbucks, Target, Yum Brands, KFC, Consumer Locations: McDonald’s USA, Pizza

☆ Big oil shareholders could get a lot richer
▼ + stars: | 2024-05-30 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Big oil just got bigger, and shareholders could soon be getting richer. Dollar Tree will reopen these stores with its own products under its brand beginning in the fall, reports my colleague Nathaniel Meyersohn. Dollar Tree, a national company with mostly suburban locations, primarily offers discretionary merchandise like party supplies and home goods. Dollar Tree also owns Family Dollar, based mostly in cities. Family Dollar has underperformed Dollar Tree and other discount chains in recent years, and it’s closing 975 stores.

Persons: Stewart Glickman, ”, “ it’s, Stewart, Hess, McDonald’s, Joe Erlinger, “, Danielle Wiener, Bronner, they’re, Chris Kempczinski, ” Read, Nathaniel Meyersohn Organizations: CNN Business, Bell, New York CNN, ConocoPhillips, Marathon, Diamondback, Endeavor Energy Partners, “, McDonald’s, America, Mac, ” Locations: New York, multibillion, McDonald’s USA, U.S, Arizona , California , Nevada, Texas, Virginia, West Coast

☆ Fast food deals were off the table. Now they’re roaring back
▼ + stars: | 2024-05-30 | by ( Danielle Wiener-Bronner | ) edition.cnn.com time to read: +6 min

KFC recently introduced a value menu with meals starting at $4.99. But it’s been a long time since they used discounted meals as a strategy to drive traffic, noted Peter Saleh, restaurant analyst at BTIG. KFC launched its value menu earlier that month. A Burger King spokesperson confirmed to CNN that it plans to offer a $5 meal, without sharing more details. And more deals don’t mean that menu prices are dropping, or even staying the same.

Persons: Burger King, Taco Bell, Jack, Wendy’s, it’s, Peter Saleh, haven’t, ”, we’ve, ” Price, ” Saleh, Chris Kempczinski, “, McDonald’s, Burger, Paul Weaver, Kempczinski, NOA, ” Cowen, Andrew Charles, Eva Marie Uzcategui, McDonald’s “, ” Charles, David Henkes, Josh Kobza, Henkes, BTIG’s Saleh Organizations: New, New York CNN, KFC, BTIG, Street Journal, National Owners Association, Bloomberg, Getty, CNN, Restaurant Brands Locations: New York, Technomic, Burger King

☆ McDonald’s: Our prices haven’t risen as much as you think
▼ + stars: | 2024-05-29 | by ( Danielle Wiener-Bronner | ) edition.cnn.com time to read: +3 min

New York CNN —McDonald’s has a message for America: Rumors of Big Mac inflation are greatly exaggerated. “The average price of a Big Mac in the U.S. was $4.39 in 2019,” he said. That’s an increase of 21% (not 100%).”What Erlinger wants customers to know is not that high-priced McDonald’s burgers don’t exist at all. Erlinger is fighting back because McDonald’s pricey burgers have become something of a symbol of elevated fast food prices. “It’s imperative that we continue to keep affordability at the forefront for our customers,” McDonald’s CEO Chris Kempczinski said during an April 30 analyst call.

Persons: New York CNN — McDonald’s, McDonald’s, Joe Erlinger, ”, “, they’re, Chris Kempczinski, NOA, Erlinger nodded, —, Jordan Valinsky Organizations: New, New York CNN, America, McDonald’s, Mac, ”, Wall Street Journal, National Owner’s Association Locations: New York, McDonald’s USA, U.S

☆ McDonald's might never expand CosMc's. But the spinoff could still pay dividends
▼ + stars: | 2024-05-28 | by ( Amelia Lucas | ) www.cnbc.com time to read: +4 min

Nearly six months since McDonald's opened its first CosMc's location, the hours-long drive-thru lines have died down, but the chain is just getting started. Since opening the initial location in the Chicago suburb of Bolingbrook, McDonald's has opened three more CosMc's restaurants, all in Texas. In another sign of the new brand's expansion, it will launch its own mobile app and loyalty program, called CosMc's Club, on Tuesday. And loyalty program members earn 10 points for every dollar they spend; once they rack up 400 points, they can redeem them for $2 rewards. CosMc's buzz dies downAt McDonald's December investor presentation, Kempczinski downplayed the short-term effect of CosMc's.

Persons: McDonald's, Chris Kempczinski, Katie Belflower, CosMc's, Mark Kalinowski, Kempczinski, we're, Frappes, Weeks, Kalinowski, Amelia Lucas Organizations: Lone Star State, CosMc's, Kalinowski Equity Research, CNBC, Intouch Locations: Chicago, Bolingbrook, Texas, McDonald's, Illinois

☆ McDonald's franchisee group says $5 value meal can't last without company investment
▼ + stars: | 2024-05-21 | by ( Kate Rogers | ) www.cnbc.com time to read: +3 min

"The fact remains that in order to provide the consumer with more affordable options, they must be affordable for the owner/operators. McDonald's vast resources and financial investment are essential to any sustainable affordable strategy," the board of the National Owners Association wrote in a letter to membership. McDonald's declined to comment on the NOA letter to its membership. In a statement to CNBC last week on the value meal the company said, "We know how much it means to our customers when McDonald's offers meaningful value and communicates it through national advertising. These ideas were initially floated by the advocacy group earlier in the year, as it pushed to add affordable options to the menu without discounting "core and iconic" items.

Persons: McDonald's, That's, NOA, Chris Kempczinski Organizations: National Owners Association, CNBC Locations: Oakland , California

☆ Target lowering prices on 5,000 frequently bought items
▼ + stars: | 2024-05-20 | by ( Rob Wile | ) www.cnbc.com time to read: +2 min

Target said Monday it will lower prices on approximately 5,000 frequently bought items as it seeks to stay competitive amid signs consumers are experiencing price fatigue. It had already cut prices on some 1,500 other items. "Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers that shop Target each week for their everyday needs." As the rate of annual inflation remains stuck above 3% and the Fed's key interest rate remains unchanged, many consumers are starting to pull back on spending and becoming more selective about what they purchase. One of Target's chief competitors, Walmart , recently signaled that even higher-income consumers were turning toward its offerings as "wallets are still stretched."

Persons: Rick Gomez, Chris Kempczinski, We've, Jack Rainey Organizations: Walmart, CNBC

"Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending," McDonald's CEO Chris Kempczinski said on the company's conference call in late April. Paul Weaver | SOPA Images | Getty ImagesFor more than two years, consumers have dealt with sharply rising prices. But that doesn't mean the actual prices seen on grocery store shelves or restaurant menus will fall, and shoppers are feeling that pinch. While some CEOs have said that consumers are growing more cautious, others — like those in the airline industry — have celebrated strong and persistent spending. Corporate misfires can also lead to disappointing sales, even if their shoppers aren't necessarily pulling back on their spending.

Persons: Chris Kempczinski, Burger, Paul Weaver, Jerome Powell, Aurelia Concepcion, Concepcion, it's, Joe Raedle, Brett House, John David Rainey, Ramon Laguarta, Ed Bastian, We're, Daniel Slim, Brian Niccol, Calvin McDonald, Laxman Narasimhan, Sara Senatore, Spencer Platt Organizations: DAL, Washington Post, Home, Delta Air Lines, Consumers, of Labor, CPI, KFC, Starbucks, Columbia Business School, Walmart, Finance, CNBC, PepsiCo, Gatorade, Pepsi, United, Delta Airlines Boeing, Owen Roberts International, AFP, Getty, Delta, Target, Bank of America Locations: Manhattan, Bloomsburg , Pennsylvania, New York, Georgia, Ohio, Miami , Florida, U.S, Delta, Europe, Asia, Japan, George Town, Cayman Islands, New York City

☆ Walmart says more diners are buying its groceries as fast food gets pricey
▼ + stars: | 2024-05-16 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +3 min

Walmart wants diners to find a value meal in its grocery aisles. As fast food gets pricier, the nation's largest grocer sees a sales opportunity. As customers see some grocery items stay the same price or even become cheaper, the gap between buying menu items and cooking food at home has grown even wider, he said. As of April, the price of food at home, a category that measures the total cost of food purchased at grocers or other food stores, was up 1.1% year over year. The price of food away from home rose significantly more: 4.1% year over year.

Persons: John David Rainey, McDonald's, Chris Kempczinski, John Furner, Furner, — CNBC's Amelia Lucas Organizations: Walmart, CNBC, Yum Brands, Management Solutions, Restaurant, U.S . Labor Department, Walmart U.S Locations: U.S, Connecticut

☆ McDonald's $5 value meal is coming in June — and staying for just a month
▼ + stars: | 2024-05-15 | by ( Kate Rogers | ) www.cnbc.com time to read: +2 min

McDonald's is set to offer a $5 value meal in the U.S., but only for a limited time. "We know how much it means to our customers when McDonald's offers meaningful value and communicates it through national advertising. That's been true since our very beginning and never more important than it is today," McDonald's said in a statement to CNBC. CNBC last week reported the fast-food giant was working to bring a value offering to menus, with details being discussed and voted on by franchisees. McDonald's recently reported a mixed first quarter, with U.S. same-store sales slightly missing expectations.

Persons: That's, McDonald's, Chris Kempczinski, John Palmaccio, — CNBC's Amelia Lucas Organizations: CNBC, U.S, National Advertising Fund Locations: U.S

☆ The $5 McDonald's meal may be making a grand comeback — but only for a month
▼ + stars: | 2024-05-13 | by ( Shubhangi Goel | ) www.businessinsider.com time to read: +3 min

McDonald's reportedly plans to launch a limited-time $5 meal. AdvertisementMcDonald's is looking to launch a $5 meal in the US in a move to bring back price-sensitive customers. CEO Chris Kempczinski said McDonald's has local value meals around the US, but no standard national offering like competitors do. A meal consisting of the same four items — a McChicken, fries, a drink, and four-piece chicken nuggets — costs $18.26 in downtown New York City. AdvertisementThe new bundle would be priced lower than a Happy Meal, which starts at $6.39 in downtown Manhattan.

Persons: McDonald's, —, Ian Borden, they're, Chris Kempczinski, Gunther Plosch Organizations: Service, Bloomberg, Restaurant Business, Customers, downtown, Burger King, Restaurant Brands Locations: New York City, downtown San Francisco, Manhattan

☆ Sweetgreen, Chipotle and other fast-casual chains are bucking the consumer slowdown
▼ + stars: | 2024-05-11 | by ( Amelia Lucas | ) www.cnbc.com time to read: +2 min

High-income consumers helped Chipotle Mexican Grill , Wingstop and Sweetgreen report strong sales this quarter, bucking the broader consumer slowdown that's been hurting other eateries. The sector saw higher traffic growth than any other dining sector from November to February, according to GuestXM data. High-income consumers haven't felt the same pinch as those in lower-income brackets. Wingstop saw its same-store sales soar 21% in the quarter. On Thursday, the salad chain reported first-quarter same-store sales growth of 5% and raised its full-year outlook for same-store sales growth.

Persons: Chris Kempczinski, John Peyton, haven't, Wingstop, Michael Skipworth, Jonathan Neman Organizations: Starbucks, KFC, Yum Brands, CNBC, Dine Brands

☆ Fast food is expensive. Applebee’s and Chili’s are moving in
▼ + stars: | 2024-05-11 | by ( Danielle Wiener-Bronner | ) edition.cnn.com time to read: +6 min

For them, and the fast food chains they’re now competing against, the stakes are high. “Fast food has gotten really expensive,” Henkes said. On X, Chili’s asked whether Chili’s is better than fast food, and promised rewards to those who said yes. Chili’s also ran video ads comparing its food favorably to fast food burgers. “People go to sit-down restaurants, generally speaking, for different occasions, than they go to fast food restaurants,” he noted.

Persons: New York CNN — McDonald’s, Applebee’s, ” John Peyton, it’s, Peyton, “, ”, Henkes, McDonald’s, Chris Kempczinski, Ian Borden, we’ve, Chili’s, Kevin Hochman, Chili's, Jeffery Greenberg, David Henkes, ” Henkes Organizations: New, New York CNN, Dine Brands, CNN, Bureau of Labor Statistics, Bloomberg, Applebee’s, Brinker International, Universal, “ Locations: New York, McDonald’s, Applebee’s, Chili’s, Technomic

☆ McDonald’s is working to introduce a $5 value meal
▼ + stars: | 2024-05-10 | by ( Kate Rogers | ) www.cnbc.com time to read: +2 min

McDonald's is working to introduce a value meal in U.S. stores to help offset an increasingly challenging environment for consumers, two people familiar with the matter told CNBC. The value meal was first reported by Bloomberg News. The potential new offering comes at a time when low-income consumers are beginning to pull back on spending, particularly at fast-food brands. Mentions of low-income consumers on company earnings calls are at their highest levels in nearly two years, according to data from Bank of America. An initial proposal by McDonald's for the $5 value meal did not clear necessary hurdles, and additional details are now being discussed, according to a person familiar with the process.

Persons: McDonald's, Dave, Buster's, Chris Kempczinski, Kempczinski, Ian Borden, — CNBC's Amelia Lucas Organizations: CNBC, Bloomberg News, Bank of America, McDonald's, U.S Locations: U.S

☆ Applebee's owner Dine Brands wants to steal fast-food customers with its deals
▼ + stars: | 2024-05-08 | by ( Amelia Lucas | ) www.cnbc.com time to read: +2 min

Applebee's and IHOP owner Dine Brands thinks its deals can lure away fast-food customers who have grown frustrated with menu prices. The company reported first-quarter earnings that fell short of Wall Street's estimates, and both Applebee's and IHOP's same-store sales shrank more than expected. As Applebee's leans into value with a slate of promotions that includes the return of Dollaritas, Dine Brands CEO John Peyton is confident that the chain can beat out the fast-food chains vying for its customers. Applebee's isn't the only casual-dining chain taking aim at McDonald's and the rest of the fast-food category. "It's top of mind for so many people, and it's because they've grown up with Applebee's," Peyton said.

Persons: Dine, Applebee's, John Peyton, Burger, Peyton, Chris Kempczinski, Peyton Manning, Tom Brady, Beyonce Organizations: Dine Brands, CNBC, Peyton, Brinker International

☆ Americans have spent their savings. Economists worry about what comes next
▼ + stars: | 2024-05-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

But now that extra spending money is gone, economists are concerned about what comes next. That means many Americans have more debt than savings and suggests “that American households fully spent their pandemic-era savings as of March 2024,” they wrote in a recent report. Consumer spending plays a crucial role in driving economic growth in the United States, and it has shown remarkable strength over the past two years. “A continuing strong labor market could help consumers maintain spending patterns similar to those observed recently, even without pandemic-era savings,” they wrote. What comes next: Disney, Airbnb, Uber, Anheuser-Busch, Tapestry and Dillards all report later this week — investors will look for any comments about how consumer spending, or lack thereof, is altering revenue forecasts for 2024.

Persons: Hamza Abdelrahman, Luiz Edgard Oliveira, ”, Austan Goolsbee, ’ ”, Fitch, Sarah Wyeth, Chris Kempczinski, Abdelrahman, Airbnb, Warren Buffett, Berkshire Hathaway, Greg Abel, Buffett, “, Abel, isn’t, Boeing “, Scott Stocker, Read Organizations: CNN Business, Bell, New York CNN, San Francisco Federal Reserve, Chicago Federal, Society for, ”, Shoppers, Tyson Foods, “, Disney, Anheuser, Busch, Berkshire, International Monetary Fund, Industries, Nvidia, Microsoft, FAA, Boeing, Federal Aviation Administration, CNN Locations: New York, United States, Omaha , Nebraska, Omaha, scamming

☆ US brands like McDonald's and Starbucks are facing mounting backlash in the Middle East as tensions rise
▼ + stars: | 2024-05-06 | by ( Alex Bitter | ) www.businessinsider.com time to read: +3 min

Read previewFor the second quarter in a row, America's biggest fast-food brands continued to see their sales hit by consumer boycotts in the Middle East. McDonald's said last week that it took a sales hit from "the ongoing war in the Middle East" at restaurants in that part of the world. AdvertisementSome consumers in the Middle East and other parts of the world have avoided brands associated with the US, citing America's support of Israel. At Starbucks, the problems in the Middle East took a toll on second-quarter international sales, CFO Rachel Ruggeri said. The analysts wrote that "a social media narrative around [Starbucks'] position on the Middle East may be the primary driver" of slower sales in the US.

Persons: —, McDonald's, Ian Borden, We're, Chris Kempczinski, Rachel Ruggeri, Laxman Narasimhan, David Gibbs, Gibbs Organizations: Service, Business, Starbucks, Bank of America, KFC, Yum ! Brands Locations: Japan, Europe, America, Domino's, Gaza, Israel, China, North America

☆ McDonald's says it's listening to penny-pinching customers and focusing on value
▼ + stars: | 2024-05-02 | by ( Grace Dean | ) www.businessinsider.com time to read: +1 min

Consumers are "price weary," and McDonald's is paying attention. McDonald's will be "thoughtful" about any further price increases in 2024, CFO Ian Borden said. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . "The consumer is price weary," McDonald's CFO Ian Borden told analysts at the company's earnings call on Tuesday. "And I think we certainly are going to be prudent and thoughtful about any further price increases that we're looking at for the rest of 2024."

Persons: Ian Borden, Borden, —, McDonald's, Chris Kempczinski Organizations: Service, Business

☆ Long-predicted consumer pullback finally hits restaurants like Starbucks, KFC and McDonald's
▼ + stars: | 2024-05-01 | by ( Amelia Lucas | ) www.cnbc.com time to read: +5 min

Starbucks announced a surprise drop in same-store sales for its latest quarter, sending its shares down 17% on Wednesday. Pizza Hut and KFC also reported shrinking same-store sales. Starbucks said bad weather dragged its same-store sales lower. Wingstop , Wall Street's favorite restaurant chain, reported its U.S. same-store sales soared 21.6% in the first quarter. This marks the second consecutive quarter that Burger King reported stronger U.S. same-store sales growth than McDonald's.

Persons: It's, McDonald's, it's, Taco Bell, January's snowstorms, we've, Ian Borden, Wall, International's Popeyes, Chris Kempczinski, Laxman Narasimhan, Narasimhan, David Gibbs, Taco, Yum, Burger, – Organizations: Starbucks Workers, D.C, Starbucks, KFC, Yum Brands, Taco, Bureau of Labor Statistics, Taco Bell, Brands Locations: Dupont Circle, Washington, Pizza, U.S, Australia, Canada, Germany, Japan, Taco

☆ McDonald's and other big brands warn that low-income consumers are starting to crack
▼ + stars: | 2024-04-30 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Some of America's best-known corporations are saying their consumers are being pinched by inflation as prices continue rising. "Consumers continue[d] to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending." The consumer price index — a broad basket of goods and services — rose at an annual rate of 3.5% in March compared with the same month a year ago. And that tenacious 3.5% annual growth is souring economic sentiment: Even after a period of runaway inflation, prices don't actually fall. That's a problem for McDonald's and a host of other firms serving customers who are feeling sticker shock.

Persons: Chris Kempczinski Organizations: Federal Reserve, Consumers, Conference Board, Fed

☆ McDonald’s earnings miss estimates as diners pull back, Middle East boycotts hit sales
▼ + stars: | 2024-04-30 | by ( Amelia Lucas | ) www.cnbc.com time to read: +4 min

McDonald's reported mixed quarterly results Tuesday as its reorganization weighed on its profit and boycotts hurt its Middle Eastern sales. McDonald's reported U.S. same-store sales growth of 2.5%, missing expectations of 2.6%. A month into the second quarter, McDonald's U.S. same-store sales are roughly flat, executives said. McDonald's said the segment's same-store sales fell 0.2%, marking the first time since the pandemic that one of the chain's divisions reported a same-store sales decline. McDonald's international operated markets segment, which includes Germany and the United Kingdom, reported same-store sales growth of 2.7%.

Persons: McDonald's, Chris Kempczinski, Kempczinski, Ian Borden, we've, Borden Organizations: LSEG, U.S Locations: U.S, Israel, Japan, Latin America, Germany, United Kingdom

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