- McDonald's CEO Chris Kempczinski said high inflation and flat customer traffic will continue to weigh on the restaurant industry, and the company is treating the difficult environment as the new normal.
- McDonald's reported U.S. same-store sales growth of just 0.8% in its most recent quarter as domestic traffic fell; industry operators reported net traffic declines in every month but one from August 2025 to July 2026.
- The company outlined a multi-year $8.5 billion investment to revamp restaurants, improve menu taste, and upgrade technology including an AI drive-thru program called ArchIQ.
- McDonald's shares dropped more than 5% during the investor day presentation and are down nearly 18% so far this year.
- Beef costs have nearly doubled over the last five years in McDonald's biggest markets, while labor and construction expenses have also risen, pressuring margins.
Quotes
“we need to stop talking about that being a difficult environment, and just say that is the environment”
“Across the board, we're seeing that inflation is sticky”
“The biggest thing that you need to do in an environment like this is you have to be able to earn share”
“We must be the first choice for more customers more often”