McDonald’s CEO Chris Kempczinski stated that the restaurant industry will continue to experience flat customer traffic and persistent inflation. Speaking on CNBC’s "Squawk on the Street," he emphasized the need for the company to adapt to this challenging environment, as he expects no significant changes in the near future. In the most recent quarter, the fast-food chain reported a modest 0.8% growth in same-store sales in the U.S., with a noted decline in traffic as consumers dine out less frequently due to rising menu prices and increased living costs.
Data from the National Restaurant Association indicates that from August 2025 to July 2026, industry operators experienced a consistent decline in customer traffic, with only one month showing an increase. Faced with these pressures, McDonald’s and its competitors have implemented discount strategies to attract customers. However, restaurant operators are also contending with soaring costs, particularly in beef prices, which have nearly doubled in five years in major markets, along with rising labor and construction expenses.
Kempczinski acknowledged the need to capture market share from competitors to navigate these difficult times. He mentioned that while price increases may be necessary, caution is required to avoid alienating customers, highlighting that McDonald’s had previously misstepped by raising prices too quickly following the COVID-19 pandemic. More details on McDonald’s strategies to enhance market share are expected to be revealed during the company’s upcoming investor day.
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