Quick and cheap are two of the first words that come to mind when thinking about fast food. But some McDonald’s customers have criticized the restaurant giant over recent higher menu prices, prompting the CEO to address the issue of affordability during the company’s latest earning call.
McDonald’s CEO Chris Kempczinski spoke to analysts on Monday morning about the fast food chain’s mixed fourth quarter results, as well as the global market impact with ongoing conflict in the Middle East and Muslim communities, and ultimately about how to re-engage lower-income customers.
After the earnings results were posted, McDonald’s shares tumbled nearly 4% on the New York Stock Exchange by closing.
While global same-store sales – meaning stores that have been open for at least a year – were up 3.4%, short of Wall Street’s expectations, Kempczinski said those earnings results were impacted by the war in the Middle East.
Domestically however, same-store sales were up by 4.3%, which was more closely aligned to previous quarters and company expectations for what the CEO called “normalized growth.”
I don’t eat fast food much at all, but a couple of months ago we went into a nearby Shake Shack to get 2 burgers, 2 iced teas, and a shared order of fries.
The bill was north of $30. Not surprising when, apart from the fact the burgers were about $10-ish each, the iced tea costs $3 each for a small. 8oz of Iced tea. That’s criminal.
Needless to say we learned our lesson and don’t eat out fast food anymore. I can sling a mean burger at home on the stove top in my cast iron pan.