McDonald’s remains in a rough patch as it struggles to shake a concerning pattern of customer behavior at its restaurants.
In McDonald’s third-quarter earnings report for 2025, it revealed that its U.S. comparable sales increased 2.4% year over year, which was “primarily driven by positive check growth.”
However, according to recent data from Placer.ai, customer visits to McDonald’s same-store locations dropped by 4% during the quarter, compared to the same time period last year.
The decrease in consumer demand follows the launch of McDonald’s “McValue” menu in January, which includes its $5 Meal Deal and “Buy One, Add One for $1” offer, aimed at attracting price-conscious consumers.
The fast-food chain also extended its restaurant location hours nationwide in May. Many McDonald’s restaurants are now open 24/7, while others will remain open past midnight.
In September, McDonald’s also relaunched Extra Value Meals, which include a $5 Sausage McMuffin and an $8 Big Mac Meal. The following month, it reintroduced its Monopoly game in the U.S. after almost a decade, which went viral on social media.
McDonald’s CEO flags a troubling customer trend
During an earnings call on Nov. 5, McDonald’s CEO Christopher Kempczinski said low-income consumers are continuing to avoid restaurants despite recent meal deals, a trend the company expects to persist into next year.
“In the U.S., we continue to see a bifurcated consumer base, with QSR traffic from lower-income consumers declining nearly double digits in the third quarter, a trend that’s persisted for nearly two years,” said Kempczinski. “In contrast, traffic growth among higher-income consumers remained strong, increasing nearly double digits in the quarter. We continue to remain cautious about the health of the consumer in the U.S. and our top international markets and believe the pressures will continue well into 2026.”
It is no surprise that McDonald’s is seeing fewer low-income consumers enter its stores, given that fast-food prices have skyrocketed over the past decade. Between 2014 and 2024, the average prices of fast-food items increased by 39% to 100%, outpacing the 31% inflation rate during that time period, according to a recent study by FinanceBuzz.
The study also found that McDonald’s menu prices for popular items have increased by 100% since 2014.
As prices go up, more consumers have opted to cook their meals at home, according to a recent survey from KPMG.
How many Americans are ditching fast food in 2025:
- KPMG found that 69% of U.S. consumers are eating at home more often rather than eating out.
- Also, 85% said that saving money was the primary reason for eating at home.
- Specifically, 34% of Americans are opting to dine less often at fast-food restaurants.
- Breakfast is the top meal that consumers cook at home (75%).
Source: KPMG
“Consumers aren’t just belt-tightening — they’re rethinking value altogether,” said Duleep Rodrigo, KPMG’s consumer and retail sector leader, in a press release. “It’s not only about cutting back; it’s about being intentional with every dollar spent. In this environment, trust, transparency, and tangible impact matter more than ever.”
During the call, Kempczinski said that McDonald’s breakfast items continue “to be under pressure.”
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“Breakfast tends to be one of the most economically sensitive daypart,” said Kempczinski. “It’s an easy daypart to either skip the meal or to eat the meal at home.”
Despite challenged breakfast sales, McDonald’s saw increased consumer momentum surrounding its chicken category during the third quarter, thanks to the re-release of its Snack Wraps, which launched in July, priced at $2.99.
“Snack Wraps were the most popular new chicken product launch in the U.S. in recent history, with nearly 1 in 5 McDonald’s customers purchasing a Snack Wrap during that period,” said McDonald’s Chief Financial Officer Ian Borden during the call. “Although easing somewhat after the exceptional initial launch period, Snack Wraps continued to deliver strong unit performance throughout the quarter, helping us gain share in the U.S. chicken category and drive high levels of customer satisfaction.”
More Food + Dining:
- Chipotle announces return of generous offer to win back customers
- Papa Johns issues stern warning about customer behavior
- McDonald’s CEO raises alarm bells about customer losses
The return of McDonald’s Monopoly game, which ran from Oct. 6 to Nov. 2, also contributed to increased consumer engagement on its app. The game allowed customers to receive game pieces with purchases of eligible menu items, which could be scanned through the app for a chance to win prizes such as free food, cash, or vacations.
“Monopoly is one of the biggest digital customer acquisition events we’ve ever had, driving downloads and registrations and reinforcing the role of digital in our broader strategy,” said Borden. “With about 45 million 90-day active users in the U.S., we’re excited about how Monopoly is helping more customers discover our strong value offerings available through our app.”
McDonald’s doubles down on strategy to win back customers
Borden warned that McDonald’s will face challenges next year, especially since beef prices are expected to skyrocket due to inflation.
“It’s still a difficult environment and inflation proving to be sticky,” said Borden. “I mean, we’re expecting to see there’s going to be above average inflation next year. You’ve heard about others referencing what’s going on with beef prices. Certainly, we’re seeing very, very high inflation around beef prices versus what we’re used to historically. And so I think all of that just, you know, keeps putting pressure on the industry.”
According to recent data from the Bureau of Labor Statistics, beef prices have increased by 51% since February 2020 due to high demand.
Rising beef prices are impacting staple grocery items nationwide:
- Since August 2024, beef priceshave increased by roughly 13% for American consumers.
- The price of beef roasts has increased by 18.4% since September 2024.
- Steak prices rose by about 16% year over year due to low cattle inventory and strong demand.
- American beef production is expected to decline 4% this year and another 2% in 2026.
Sources: U.S. Department of Agriculture, NerdWallet
To attract and retain customers amid current headwinds, McDonald’s plans to further expand its Extra Value Meals (EVMs), which account for approximately 30% of its total transactions in the U.S.
Before the re-launch of EVMs, the average discount level at McDonald’s U.S. locations was about 11%. With EVMs, McDonald’s is targeting a minimum discount level of 15%.
The fast-food chain hopes that EVMs will help it attract more lower-income consumers and improve value and affordability in its stores.
“I’m pleased with how our EVM program is performing since re-launch,” said Kempczinski. “We’re still in the early stages of the program and expect that the associated comp sales lift and traffic improvements will continue to build as awareness of the program increases over the coming quarters.”
In a statement to TheStreet, retail analyst Bruce Winder said that while using EVMs to boost sales isn’t a new tactic for McDonald’s, it is crucial for the fast-food chain to “design the value offerings correctly.”
“McDonald’s has used extra value meals in the past (i.e., following the 2008 financial crisis) to drive business with lower-income customers who have cut back due to economic headwinds,” said Winder. “It is a very popular tactic used by other QSR companies. The company needs to be careful to ensure there is a difference between its core offerings and its value offerings from a size perspective or [it risks] cannibalization from a sales perspective.”
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