economy
McDonald's CEO says consumer spending could be 'getting a little bit worse'
Shares of McDonald's have fallen 10% over the last year, hurt by concerns about the broader economy.
TL;DR
- McDonald's beat Q1 earnings and revenue expectations.
- CEO Chris Kempczinski noted a challenging consumer environment that may be worsening.
- High gas prices and inflation are disproportionately impacting low-income consumers.
- McDonald's hopes its value offerings will help it gain market share.
- Same-store sales increased 3.8% globally, with the U.S. market up 3.9%.
- Company-owned U.S. restaurants are seeing weaker margins, prompting consideration of sale to franchisees.
- The company anticipates weaker sales in Q2 due to tougher year-over-year comparisons.