McDonald’s CEO is wrestling with “two levels” because it cultivates prices on value meals

For years, its date dates back to the 2022 inflation wave, and McDonald’s and its competitors have strengthened fast food with the shoppers frustrated with the high price of the list, with increasingly liberation and narration meals to double numbers. Customer customers continue to order distinct products and use delivery applications at health prices. However, the low income Diners CutKimbesinski argued in interview On CNBC “Squawk fund“Treating fast food is less than daily rest and sometimes more.

“Especially with medium and low consumers, they feel a lot of pressure at the present time,” said KEMPCZINSKI to CNBC. “There are a lot of comments about it,” what is the state of the economy, how are she now? “What we see is that this is two kinds of economics. Ct the traffic movement of this population composition, which has declined double numbers, and it exceeds breakfast or eating at home.

KEMPCZINSKI has been pressed on some political issues by CNBC, including whether McDonald’s is suitable for the Minister of Health Services Robert F. Kennedy, or “make America healthy again”, and politics about any taxes on advice. Kempczinski said he personally supports lack of taxes on tips, but he made it clear that McDonald’s did not help much, because he did not allow advice. Restaurant requires tips A The minimum wage is only $ 2.13 per hourHe added, which has not changed since 1991, describing this as an “uneven stadium” that “you are basically making the customer pay for your work,” in addition to the tax -exempt interest. He called for a federal minimum wage for all types of restaurants, then he said that McDonald’s was “open” to raise the minimum federal wages after that, adding that the company was “in a dialogue” with the White House on many issues, including these issues.

The minimum current federal wage in the United States is $ 7.25 per hour, a rate has not changed since July 24, 2009. This is a long -term rate over 16 years without federal increase, making it the longest period in the history of the United States without updating to the minimum wage. However, many states and localities have adopted the minimum wage rates higher, some of which reach $ 18 per hour in the province of Colombia.

In 2025, an important new legislation called the 2025 wage law was presented in Congress. This proposed law will gradually increase the minimum federal wages to $ 17 per hour by 2030, which leads to a gradual disposal of wage rates in the external tingling of distinguished workers, disabled workers and young workers. In addition, the Senate Bill has been proposed to raise the minimum wage to $ 15 per hour, starting from January 1 of the first year after its passage. These legislative efforts indicate active momentum at the federal level to increase the minimum wage after more than a decade.

It differs from the great recession

Kempczinski added that this is not like what McDonald’s saw during the great recession period, “When everyone traded.” Thus, McDonald’s must be creative to play the two sides of the case. The possibility of access to low -income consumers comes in the form of a package of renovated meals of $ 5, as well as more aggressive quotes in the leading markets. Advertising campaigns tend greatly on the subject of value, a message aimed at echo with conscious families for the cost that forced to make bodies more clear in their daily spending.

The strategy emphasizes a budget for McDonald’s. As one of the few global chains of size and the power of purchases to reduce prices without paralyzing profitability, the company can play a crime as young competitors cannot. However, the concessions – who run most of the United States sites – are wary of the insomnia price points can turn into the pressures of the margin as wages, rent and insurance remain high. However, KEMPCZINSKI told CNBC anchors that moving towards more value was “almost unanimously” between the concessions, to a sudden reaction.

The broader retail image

McDonald strategy is the re -division of the broader division through most of the American economy. BigBox retailers like Wal Mart and goal Reporting a similar trend The General CEO of the dollar, Todd Vasus, put his finger on In March: “Many of our customers state that they only have enough money for basic necessities.” Delta AirlinesA representative of the request between the wealthy consumer regiment, has largely moved from force to power as the most beautiful American airline, although it has it Decreased guidance during the year 2025Due to the uncertainty of the Trump tariff system.

Trends remember an economic pattern that was identified during the epidemic: Economy “K.”. As Gregory Daco, the chief economist in Ey-Parthenon, Make luck In 2023This means that medium and low consumers are one leg of “K”, referring to the bottom and right, while the upper income regiment works better and better.

Nevertheless, McDonald’s mastery “K” has to get the maximum benefit from its consumers. This means fighting in order to maintain its position, which dates back to decades as the right place to eat a meal at reasonable prices, so that it is tried the chances of the upper margins to maintain the satisfaction of the shareholders. Whether this balance law proves that it is sustainable may be dependent on the period around which the consumer economy in America revolves around.

For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.

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