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In January, economists warned Customers will spend less at fast-food chains and other places as rising inflation drives up the prices of essential goods — and earnings reports released this week show those predictions may have come true. .
McDonald’s, Starbucks, pizza hutand Kentucky Fried Chicken Both companies reported lower-than-expected sales this week.
“Obviously everyone is fighting for fewer consumers, or certainly consumers who are visiting less frequently, so we need to make sure we have a street-fighting mentality to win. [regardless] About the situation around us” McDonald’s CFO Ian Boden Said He spoke during the company’s financial results conference on Tuesday.
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McDonald’s logo. (Photo by Paul Weaver/SOPA Images/LightRocket, Getty Images)
McDonald’s same-store sales in the U.S. rose 2.5% last quarter (January to March). slightly below expectations This was a growth of 2.55%, much lower than the fast food chain’s 12.6% growth in the same period last year.
Related: McDonald’s CEO says “affordable prices” are becoming a reality despite struggling with slumping sales
All other companies also reported declines in the same category.Starbucks’ same-store sales fell 3% in the U.S., the first decline in the category. within almost 3 yearsMeanwhile, same-store sales at Pizza Hut and KFC fell 7% and 2%, respectively.
The earnings report was as follows: weak than Analyst Be expectedmay be due to inflation. higher price.mcdonalds Menu price increase Last year it decreased by 10%.
a restaurant business analysis According to a study of McDonald’s products in all 50 states, the average price of a McDonald’s cheeseburger has increased 55% over the past three years.
McDonald’s CEO Chris Kempczinski previously said, “Eating at home has become more affordable.” February Earnings calls.
Related: McDonald’s has made a simple change to a cult-favorite menu item. Now, the sandwich is his billion-dollar brand.
Data from recent Consumer Price Index reports backs up Kempczinski’s statement.of report According to the study, product prices in the ‘home food’ category have increased by 1.2% over the past year, while out-of-home food prices have increased by 4.2% over the same period.