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.”