{"id":1632,"date":"2026-05-07T15:15:20","date_gmt":"2026-05-07T15:15:20","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=1632"},"modified":"2026-05-07T15:15:20","modified_gmt":"2026-05-07T15:15:20","slug":"mcdonalds-focus-on-value-lifts-first-quarter-sales-but-company-says-gas-prices-could-dent-demand","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=1632","title":{"rendered":"McDonald\u2019s focus on value lifts first-quarter sales, but company says gas prices could dent demand"},"content":{"rendered":"
\n

By DEE-ANN DURBIN, AP Business Writer<\/strong><\/p>\n

McDonald\u2019s\u00a0posted better-than-expected sales in the first quarter but said\u00a0high gas prices\u00a0and consumer anxiety over the\u00a0Iran war\u00a0could dent sales this spring.<\/p>\n

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The average price of a gallon of gas in the U.S. was $4.55 on Thursday, according to AAA. That was 44% higher than a year ago.<\/p>\n

McDonald\u2019s Chairman and CEO Chris Kempczinski said the company has been making progress bringing lower-income customers back into its stores with\u00a0value meals. But fast food visits by customers with household incomes of $45,000 or less are still declining overall, and the spike in gas prices won\u2019t help, he said.<\/p>\n

\u201cClearly, when you have elevated gas prices\u2026 that is going to disproportionately impact\u00a0low-income consumers. And so we expect the pressures there are going to continue,\u201d Kempczinski said Thursday during a conference call with investors.<\/p>\n

McDonald\u2019s said same-store sales, or sales at locations open at least a year, fell in the U.S. and some international markets in April. That was partly due to a big surge in sales last April, when a popular Minecraft meal drove traffic. Kempczinski said it\u2019s too early to get a read on sales in May and June, although the company is hoping a\u00a0new beverage lineup\u00a0which launched in the U.S. this week will generate interest.<\/p>\n

\u201cCertainly consumer sentiment is heightened anxiety, let\u2019s just say, and it may have an impact. But, you know, our focus is on controlling what we can control,\u201d Kempczinski said.<\/p>\n

McDonald\u2019s shares were flat in early trading Thursday.<\/p>\n

\n<\/div>\n

In the January-March period, McDonald\u2019s global same-store sales rose 3.8%. That was better than the 3.7% increase Wall Street was expecting, according to analysts polled by FactSet.<\/p>\n

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The company kept customers interested with limited-time menu items like the Big Arch burger, a 1,020-calorie behemoth that went on sale in the U.S. in March. The burger became a viral sensation after Kempczinski\u00a0posted a video\u00a0of himself taking a nibble from one and was mocked for his tentative bite. Tom Curtis, president of rival Burger King, posted\u00a0his own video\u00a0taking a vigorous bite of his chain\u2019s new Whopper.<\/p>\n

The Big Arch burger costs well over $8 in many U.S. markets. So McDonald\u2019s is trying to emphasize value in other parts of its menu. The company cut prices on some\u00a0U.S. combo meals\u00a0in September, and starting April 21, McDonald\u2019s U.S. stores began\u00a0offering 10 items\u00a0that each cost less than $3.<\/p>\n

Kempczinski said McDonald\u2019s experience in other markets like Germany and Australia has shown that the combination of meal deals and low-priced individual items is the best value strategy.<\/p>\n

\n<\/div>\n

\u201cYou need to have a meal deal offering there to be able to drive interest and excitement around some of our core menu items,\u201d Kempczinski said. \u201cBut you also need entry-level price points for those folks who are maybe a little bit more stressed around affordability and are looking for, you know, \u2018What can I get for $3 or less?\u2019\u201d<\/p>\n

The Chicago chain said its revenue rose 9% in the first quarter to $6.52 billion. That was also higher than the $6.47 billion Wall Street was expecting, according to FactSet.<\/p>\n

McDonald\u2019s net income rose 6% to $1.98 billion. Adjusted for one-time items, the company earned $2.83 per share. That was also higher than analysts\u2019 forecast of $2.74.<\/p>\n

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McDonald\u2019s posted better-than-expected sales in the first quarter as a new burger and a continuing emphasis on value brought in customers.<\/p>\n","protected":false},"author":1,"featured_media":1631,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-1632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-verified-news"],"yoast_head":"\nMcDonald\u2019s focus on value lifts first-quarter sales, but company says gas prices could dent demand - Silicon Valley Moving Post<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/siliconvalleymovingpost.com\/?p=1632\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"McDonald\u2019s focus on value lifts first-quarter sales, but company says gas prices could dent demand - 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