Wendy’s and McDonald’s Report Breakfast Business Slows Amid Consumer Cutbacks

Fast food chains are reportedly seeing a decline in their breakfast business as Americans cut back on spending.

Executives from Wendy’s and McDonald’s said this week during earnings calls that their breakfast business is doing worse than other times of day, despite discounts offered by the companies, Bloomberg reported Friday (Aug. 8).

Wendy’s interim CEO and Chief Financial Officer Ken Cook told analysts, per the report: “When consumer uncertainty increases and consumers choose to eat another meal at home, breakfast is often the first place that they do that with.”

McDonald’s CEO Chris Kempczinski said during his company’s earnings call that breakfast is “absolutely the weakest daypart” and that some customers were not visiting the chain for that meal, according to the report.

It was reported in May that during another earnings call, Wendy’s said that it expected customers to feel financial pressure for the remainder of the year.

McDonald’s said during its Thursday (Aug. 7) earnings call that growth at its U.S. outlets slowed to 2.5% in the spring quarter amid “continued pressure” on lower-income consumers even as the company leaned on value meals and mobile-app deals to keep traffic moving.

PYMNTS reported Monday (Aug. 4) that although there is a prevailing sense of caution and a degree of gloominess in consumer mood, U.S. households are proving to be resilient in terms of consumer spending.

Earnings reports showed that some categories, particularly essentials and packaged goods, are drawing their fair share of consumers’ monthly budgets.

Back-to-school spending proved to be a standout among retail categories, while travel and luxury spending have seen headwinds.

The PYMNTS Intelligence report “Stock Out. The Impact of Tariffs on Consumer Product Prices and Availability” found that nearly one-third of respondents delayed or cancelled discretionary buys in June.

Another PYMNTS Intelligence report, “New Reality Check: The Paycheck-to-Paycheck Report: Navigating the Shifting Sands of Consumer Spending Amid Rising Prices and New Tariffs,” found that income makes a difference in consumer sentiment.

The report found that 31% of financially secure consumers said they would continue buying at their current quantity and frequency amid price increases, while only 13% of paycheck-to-paycheck consumers with issues paying their monthly bills said the same.