Gas prices pressuring McDonald’s low-income consumers

CHICAGO — Rising gas prices are putting a strain on low-income consumers for McDonald’s Corp., despite launching a revamped value menu to help attract that demographic, the company said during a recent call with investors to detail its 2026 first quarter earnings.

“We’re measuring success in two ways, our ability to grow share with low-income consumers and our ability to improve value and affordability scores,” said Christopher Kempczinski, chairman of the board, president, and chief executive officer, McDonald’s. “The low-income (consumer) is absolutely still declining. I think some of that is probably due to lapping. 

“I think also in our business, we would look and think we’ve recaptured some of those low-income consumers because of our value program. But clearly when you have elevated gas prices, which is the core issue that I think we’re all seeing about in the press right now. Gas prices, inflation, that is going to disproportionately impact low-income consumers, and so we expect the pressures there are going to continue.” 

Ian Borden, executive vice president and global chief financial officer, McDonald’s, added, “Higher gas prices are not going to be helpful, particularly for lower-income consumers who are already, I think, under pressure,” he said. “But we think we’re offering the right choice and affordability on the menu that’s going to appeal to consumers across all income cohorts. And obviously, that’s always our goal.” 

Kempczinski said McDonald’s is still seeing solid growth and share gains with higher-income consumers, despite the economic environment.

“At a macro level, it’s largely unchanged in that the higher-income (consumer) continues to have very resilient spending,” he said. “And that is true for our business as well.”

For its 2026 fiscal first quarter ended March 31, McDonald’s saw net income of $1.98 billion, equal to $2.78 per share on the common stock, an increase of 6% from $1.86 billion and $2.60 per share the prior first quarter.

Total first-quarter revenues were $6.5 billion, up 9% from $5.95 billion a year ago.

Comparable sales in the US were 3.9%, compared to negative 3.6% in 2025. McDonald’s said US comp sales were primarily driven by positive check growth. Global comp sales increased 3.9%, up from negative 1% during the previous first quarter.

McDonald’s recently launched a new beverage platform featuring refreshers and crafted sodas, and will add Red Bull-infused drinks later this year.

| Photo: McDonald’s USA, LLC

“In a challenging environment, our system stayed focused on what we can control, delivering on the things that matter most to our customers: compelling value that brings customers in the door, breakthrough marketing that gives people a reason to choose McDonald’s, and great tasting menu innovation that keeps us relevant and gives customers more of what they want,” Kempczinski said. 

To build on the revamped Extra Value Menu platform the company launched last September, McDonald’s added a revised McValue platform in April with several low-priced menu options, including an under $3 menu featuring a $2.50 McDouble cheeseburger, and a $1.50 Sausage McMuffin. 

“Likewise, the new $4 breakfast meal deal now complements the $5 McChicken and $6 McDouble rest-of-day meal deals that remain on the McValue platform,” Borden said. “Together, the under $3 menu and the meal deals provide clear, compelling price points across all dayparts, similar to what we’ve been offering successfully in nearly all major international markets.”

Red Bull partnership

McDonald’s closed its CosMc’s beverage-only concept last year, but executives said at the time the company would take what it learned from operating CosMc’s and apply more focused beverage offerings at McDonald’s restaurants. The first part of that new beverage platform launched last week under the McCafé banner, which features three different refreshers and three crafted sodas. The refreshers feature freeze-dried fruit inclusions and popping boba, while the sodas feature flavor mixers and cold foam toppings. 

“The soft-sell launch results over the last week are encouraging, and we’re looking forward to introducing different flavors and Red Bull-infused energy drinks throughout the year,” Kempczinski said. “There were some things we needed to do in partnership with Red Bull to be able to meet the demand that didn’t line up perfectly with this May launch, but it also gives us an opportunity to re-hit the platform, which we’ll do sometime later this year.” 

Chicken growth

Kempczinski said the continued elevation of beef prices has the company focusing on its chicken offerings. He estimated McDonald’s has gained about two points of share in chicken sales over the past few years, with “significant” opportunity to grow further.

“I do think it’s a fair thing to point out that when beef prices are as elevated as they are, chicken becomes a much more attractive value opportunity relative to beef,” he said. “How that continues or plays out in terms of its growth depends largely on how long these beef prices are at these … historic highs. Certainly, right now in the environment we’re in, I think chicken is benefiting relatively to its better cost position relative to beef.” 

McDonald’s sees opportunity for sales growth of its chicken items, which include strips, nuggets and sandwiches, as beef prices remain elevated. 

| Photo: McDonald’s USA, LLC

Based on its first quarter results, McDonald’s reaffirmed its full-year 2026 outlook of approximately 2.5% system-wide growth, and an operating margin in the mid-to-high 40% range.

“Longer-term, we believe there is an increased risk of higher cost inflation due to ongoing global supply chain disruptions,” Borden said. “While we expect the external environment to remain challenging, we’re focusing on what we can control, executing consistently across value, menu and marketing, and leveraging the financial strength and scale of our global system.”