Corrections & Clarifications: An earlier version of this story misinterpreted remarks by McDonald’s CEO Chris Kempczinski. Lower-income consumer foot traffic dropped nearly double digits industrywide.
The dollar (menu) doesn’t go as far as it used to.
Though President Donald Trump praised McDonald’s for “recommitting to affordable options’’ during remarks delivered at the company’s Impact Summit on Nov. 17, foot traffic from lower-income customers is down by nearly double digits in the fast food industry, McDonald’s leadership said while announcing third-quarter earnings in early November. Value-priced companies are seeing lower-income Americans struggle to afford their products.
Lower-income consumers are facing “pressures,” CEO Chris Kempczinski told analysts about broader trends affecting the entire fast food and quick service food industry.
“You’re seeing across the country, rents are at pretty high levels. You’re seeing food prices, whether it’s in restaurants or grocery, you’re seeing food prices are high. You’re seeing childcare is high,” Kempczinski said. “There’s some significant inflation there that the low-income consumer is having to absorb.”
A McDonald’s meal sits on a tray in a McDonald’s restaurant on May 1, 2025 in Miami.
In September, meanwhile, grocery company Kroger highlighted that “low- and middle- income households are really looking for deals. They’re using coupons more. They’re making smaller but more frequent trips. And they’re buying more private label products. They’re also eating out less.”
And in October, Chipotle’s CEO said “low to middle-income guests” are making fewer visits to the burrito chain.
At a Nov. 17 conference of McDonald’s company leadership, franchise owners, and other stakeholders, President Donald Trump highlighted his efforts to eliminate various taxes, loosen regulations and increase investments to bolster the economy. After various local elections favored candidates who promised to address the high cost of living, Trump has also sought to portray himself as a champion of affordability. The president signed an executive order on Nov. 14 eliminating tariffs on products including beef, coffee, tomatoes and oranges. Many analysts have noted that the tariffs themselves are contributing to the inflation many low- and moderate-income Americans are struggling with.
More: Trump leans on his love of McDonald’s as he touts his efforts to make things affordable
As previously reported, the retreat by lower-income Americans is part of what some analysts call a “K-shaped economy”: Those with fewer resources are doing poorly while upper-income consumers continue to spend.
More: Does the U.S. have a ‘K-shaped economy’? What it means for you.
Visits by more affluent consumers to McDonald’s are up by nearly double digits, Kempczinski said. And they aren’t just spending on Happy Meals. In October, LVMH, the global luxury conglomerate that owns brands like Christian Dior, Fendi, and Tiffany & Co., had a better-than-expected quarter, sending its stock 12% higher.
In fact, the buoyant stock market is one of the biggest reasons higher-income Americans are able to spend more. Roughly 87% of households earning over $100,000 own stocks, versus just 28% of households earning less than $50,000.
Meanwhile, big companies continue to see a widening split between the haves and have-nots. For Procter & Gamble, maker of diapers, soaps, and other health and beauty aids, that means higher-income consumers are able to spend more on bigger sizes that offer more value for the money, while lower-income shoppers pay what they can for smaller sizes.
Those consumers, said CFO Andre Schulten, “continue to live paycheck to paycheck.”
This article originally appeared on USA TODAY: Trump touts affordability but fast food dip shows low income struggle