McDonald’s CEO Warns Consumer Sentiment Is Declining

McDonald’s executives warned Thursday (May 7) that consumers are becoming more cautious with their spending as economic uncertainty continues to weigh on household budgets, prompting more diners to seek out low-priced meals and discounts.

On a conference call discussing the company’s first-quarter 2026 earnings results, CEO Chris Kempczinski said consumer sentiment is “certainly not improving, and it may be getting a little bit worse.”

The comment underscores how restaurant operators are increasingly confronting cautious consumer spending despite moderating inflation in some markets. McDonald’s executives said diners are placing greater emphasis on value, consistency and flexibility as household budgets remain under strain.

Chief Financial Officer Ian Borden said the high-income segment “continues to have very resilient spending,” while low-income consumers continue to pull back on spending, although less so than they have at periods of higher inflation.

McDonald’s reported first-quarter global comparable sales growth of 3.8%, including 3.9% growth in both the United States and International Operated Markets segments. Executives repeatedly pointed to value-oriented purchasing behavior across income groups. Kempczinski said McDonald’s has been tracking “our ability to grow share with low-income consumers” alongside customer perceptions of affordability since relaunching its Extra Value Meals platform last year.

In response to the consumer environment, McDonald’s has expanded its U.S. McValue platform to include items priced below $3 and a $4 breakfast meal deal, while international markets continue emphasizing bundled meals and low-priced menu options. The company said those offerings are helping maintain customer traffic despite what Borden described as a “challenging environment” and softening industry demand trends.

PYMNTS Intelligence data supports McDonald’s warning that customers are becoming more cautious with spending. The March PYMNTS Consumer Expectations Index found a divide between financially secure households and consumers living paycheck to paycheck, with financially strained consumers reporting negative expectations around spending power and economic conditions.

PYMNTS Intelligence’s December Paycheck-to-Paycheck Report found that 67% of U.S. consumers were living paycheck to paycheck, while nearly 25% struggled to pay bills. Many financially strained households were still supporting family members or dependents, often by cutting essentials or relying on credit.

Consumers are looking for deals from restaurants. PYMNTS Intelligence’s December B2B and Digital Payments Tracker® Series showed that 48% of diners participate in loyalty programs, and 54% of quick-service restaurant (QSR) customers consider the availability of rewards when choosing where to eat.