Additional Coverage:
- McDonald’s CEO warns of ‘two-tiered economy’ (foxbusiness.com)
McDonald’s Revives Extra Value Meals Amid “Two-Tier Economy”
McDonald’s CEO Chris Kempczinski offered a glimpse into the current economic landscape as the fast-food chain announced the return of its Extra Value Meals this week. He described a “two-tier economy,” where higher-income consumers remain relatively unaffected by economic pressures, while middle- and lower-income individuals are increasingly struggling.
Kempczinski, speaking on CNBC, noted that while upper-income consumers continue to enjoy positive financial indicators, those with lower incomes are facing significant challenges. This disparity has led to decreased traffic for fast-food companies, with some individuals even skipping meals or opting to eat at home more frequently.
In response, McDonald’s has reintroduced eight Extra Value Meal bundles, offering breakfast, lunch, and dinner options at a 15% discount compared to purchasing items individually. These bundles include popular choices like the Sausage McMuffin with Egg, Big Mac, and 10-piece Chicken McNuggets. The company is also launching limited-time promotional pricing, including a $5 Sausage McMuffin with Egg meal and an $8 Big Mac meal.
Kempczinski explained that McDonald’s aims to provide affordable options for budget-conscious customers, offering a “value ladder” with entry-level pricing for those with limited funds, alongside more premium items for those willing to spend more. He emphasized that this economic situation differs from the Great Recession, where widespread trading down was observed across all income levels. Currently, the impact is primarily felt by middle- and lower-income consumers.
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- McDonald’s CEO warns of ‘two-tiered economy’ (foxbusiness.com)