McDonald's sales return to growth

Earnings boosted by lower-priced meals

- JULIE CRESWELL

For some consumers, fast food has simply become too expensive.

Executives at McDonald's conceded Wednesday morning that a segment of their customer base, particularly lower-income consumers, are less willing to spend $10 (325 baht) or more for a meal of a burger, fries and a drink at the restaurant chain.

While the burger giant has had success bringing customers back with $5 meal deals, executives said they were having conversations with franchisee owners, who set the prices at their own stores, to try to find ways to give consumers even cheaper meal offerings.

“Too often, if you’re that consumer, you're driving up to the restaurant and you're seeing combo meals could be priced over $10, and that absolutely is shaping value perceptions,” McDonald's chief executive, Chris Kempczinski, told Wall Street analysts and investors on a call Wednesday. He noted some consumers have a negative view of pricing, adding, “we've got to get that fixed.”

Indeed, it was the $5 meal deals and return of snack wraps, priced at $2.99, this summer that propelled McDonald’s sales higher in its latest quarter.

The restaurant chain reported that global same-store sales rose 3.8% in the quarter ending June 30, compared with the same time last year. Sales in the United States were the primary driver, with a 2.5% increase.