An earnings report issued by McDonald's recently pointed to some signs that the company's customers are more austere, so to speak.
This report is periodically delivered to the company's investors, who hope to assess the company's financial health in order to decide whether to maintain their investments or not.
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According to the document, many people are no longer ordering fries along with other snacks, especially hamburgers. Even the combo of soda, fries and hamburger is one of the greatest McDonald's classics.
"Certainly the customer is aware of how they are spending their money," said the company's CEO, Chris Kempczinski, after arguing about some possible reasons for the decrease in potato chip consumption.
To corroborate the austerity thesis, data on inflation in the United States issued last year showed that products such as those sold by McDonald’s had an increase of 7.6% in 2022.
In addition, food deliveries are also more expensive, which also contributes to the increase in product prices and the decision to reduce purchases, taken mainly by low-income customers.
Despite the scenario, the CFO of McDonald's, Ian Borden, who also signed the report sent to investors, he was optimistic, saying that the possible financial crisis that will fall on Europe and the United States will be beneficial for the company.
According to Borden, one of the factors that “shield” the fast food chain is the lower prices than the competition. In parallel to this, the report pointed out that in 2022 there was a 12.6% increase in McDonald's revenue in the US and 4% globally.
In that sense, Chris Kempczinski was confident. “As for the outlook for the business, we remain very confident about where we are positioned,” he said. “Consumer demand for our brand remains strong,” he concluded.
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