McDonald's is facing headwinds with its core low-income customer base despite a major push to win them back with aggressive value pricing.
The company is struggling to offset the impact of elevated gas prices on lower-income consumers, executives said during the company's first-quarter earnings call in May 2026. CEO Christopher Kempczinski acknowledged that "the low-income consumer is absolutely still declining," and attributed much of that pressure directly to fuel and broader inflation costs that hit poorer households hardest.
"When you have elevated gas prices, which is the core issue that I think we're all seeing about in the press right now... that is going to disproportionately impact low-income consumers, and so we expect the pressures there are going to continue," Kempczinski said.
McDonald's rolled out multiple value platforms to stem the decline. The company launched its Extra Value Menu last September, then added a revised McValue platform in April with items like a $2.50 McDouble cheeseburger and $1.50 Sausage McMuffin. It also introduced a $4 breakfast meal deal alongside $5 and $6 options for rest-of-day meals.
The financial results showed the company's overall strength. First-quarter net income reached $1.98 billion, up 6% from $1.86 billion a year earlier. Total first-quarter revenues hit $6.5 billion, up 9% from $5.95 billion. US comparable sales climbed 3.9%, a sharp reversal from negative 3.6% in the same period the prior year, driven primarily by higher check sizes rather than traffic growth.
But that strength masks divergence by customer segment. Higher-income consumers remain resilient. "The higher-income consumer continues to have very resilient spending," Kempczinski said, "and that is true for our business as well." McDonald's is seeing solid growth and share gains with that group.
The company is also betting on chicken as beef prices remain elevated. Kempczinski said McDonald's has picked up roughly two percentage points of share in chicken sales in recent years and sees "significant" room to grow further as the higher cost of beef makes chicken a more attractive value option.
On beverages, McDonald's launched refreshers and crafted sodas under the McCafé banner after closing its CosMc's concept. The company plans to roll out Red Bull-infused energy drinks later in 2026, though some product availability constraints will delay that rollout beyond May.
For the full year 2026, McDonald's reaffirmed its outlook for approximately 2.5% system-wide growth and an operating margin in the mid-to-high 40% range.