McDonald’s U.S. boss puts focus on ‘value and affordability’

McDonald’s Focus on Value Offerings Amidst Industry Competition

McDonald’s leadership is emphasizing the importance of staying committed to value offerings as the fast-food industry continues to experience intense competition for consumer attention. In a recent memo to US operators, McDonald’s US President Joe Erlinger expressed confidence in the brand’s direction, citing a year-long focus on value as a key factor in its success.

The memo, which followed the company’s third-quarter earnings report, highlighted the need for McDonald’s to remain “customer-obsessed” in order to win over consumers amidst industry pressures and aggressive competition. Despite reporting earnings per share and revenue that fell short of Wall Street expectations, McDonald’s same-store sales showed positive growth across all segments, with US same-store sales increasing by 2.4% thanks to the success of its $2.99 Snack Wrap launch and Extra Value Meals.

Emphasis on Disciplined Pricing and Affordability

Erlinger noted that while the company has maintained a positive comp guest count gap, overall guest counts continue to decline, underscoring the need for disciplined pricing, value, and affordability. He expressed confidence in the company’s plan, citing a strong fourth quarter ahead, including the benefit of annual comparisons to last year’s E. coli outbreak that impacted burger sales.

CEO Chris Kempczinski also weighed in on the state of the consumer base, noting a bifurcated trend among quick-service restaurants. Lower-income consumers are driving a decline in traffic, while higher-income consumers are fueling growth. Kempczinski cautioned that the company remains cautious about the health of the consumer in the US and top international markets, expecting pressures to persist into 2026.

Investing in Menu Categories and Beverages

In a separate memo to global operators, Kempczinski emphasized the brand’s focus on sharpening its value leadership to meet evolving consumer expectations and drive traffic. The company plans to invest in high-potential menu categories, such as chicken and beverages, to stay competitive and drive growth. Currently, McDonald’s is testing beverages in 500 restaurants across Wisconsin and Colorado, drawing on learnings from its now-shuttered beverage concept, CosMc’s.

By staying committed to value offerings and investing in key menu categories, McDonald’s aims to maintain its competitive edge in the fast-food industry and continue to attract price-conscious consumers. As the company looks to the future, its focus on disciplined pricing, affordability, and customer obsession will be crucial in navigating the ongoing challenges of the industry.