McDonald’s price hikes are boosting sales, but some diners are pulling back

April 25, 2023

McDonald’s is closely monitoring diner acceptance of price increases, Kempczinski said, as resistance to pricier menu items grows in some regions. This diner sentiment marks a recent shift — in January, Kempczinski said the company hadn’t noted “any big resistance” from customers at that point. 

Kempczinski linked the price sensitivity to double-digit inflation. He also noted that growth in delivery, which is historically a strong performing segment for the chain, is slowing, which may be connected to economic pressure on consumers.

McDonald’s predicts macroeconomic headwinds will continue and is bracing for a potential recession in the U.S. and Europe.  

“Value for money and affordability, I would say, are two things that we’re always laser focused on, but I think obviously even more so in the current context,” Borden said. “We’re having to take more price on the back of higher levels of inflation. … I think we’re doing that in a very prudent and balanced way to make sure that we are kind of leaning into the needs of our consumers.” 

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