But on the call with investors, Mr. Kempczinski acknowledged that the company had work to do to regain its reputation as a value.
The price increases, decided in response to inflation, have “led consumers to reconsider their purchasing habits,” Mr. Kempczinski admitted.
While some markets have been able to adapt, for others “a more comprehensive reflection has been necessary,” he said.
McDonald’s has raised prices on its core products faster than its competitors, said Sara Senatore, an analyst at Bank of America.
“Consumers are savvy, they’re aware of it,” she said. “The $5 meal they’ve launched may be starting to change perceptions, but we’re not seeing a change in transaction trends yet, and that’s what they’re going to have to see.”
McDonald’s is the latest industry giant to warn of a slowdown in consumer spending, particularly in major economies like China.
The company said overall revenue, which includes sales from newly opened stores, was flat compared with a year earlier. Profit fell 12%.
McDonald’s said low-income customers were particularly hard hit and that the loss of those shoppers was not being offset by wealthier households cutting prices.
Demand at its restaurants fell in the United States, the company said, while weakness in France and a price war in China also weighed on sales.
France is among the countries where the brand has been hit by calls for boycotts triggered by Israel’s war in Gaza. Other American companies, including Starbucks, are also affected.
“Consumers are becoming more demanding about where, when and what they eat, and I would say we don’t expect to see significant changes in that environment over the next few quarters,” a McDonald’s executive said on the call.