The inflation crisis that fucks the US economy is now taking a visible impact on consumers. Last month, the data shows that the confidence of users in the US fell to a five -year minimum. The country’s economy contracted in the first quarter for the first time in 2022.
The current profit season emphasizes the struggles of companies exposed to consumer costs. McDonald’s Corp fast food giant (NYSE: MCD) March Quarter and Revenue missed Wall Street assessments, while the company has declined to have a 3.6% decrease in the same US stores, the largest decrease since 2020.
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McDonald’s CEO Chris Kempchinski Whether Frank indicated the plight of the users influencing the company during his call for analyzers profit. The executive stated that the traffic of a low -income consumers has died with double numbers compared to the previous quarter. Consumers with medium income, who behaved relatively well until a few months ago, also saw similar downturns, indicating that economic pressure on traffic has “expanded”, according to Kempczinski.
However, since the average portfolio of the American feels the pressing, the cost of fast food from wealthy customers remains sustainable.
“The growth of high-income cohort trafficking remains solid, illustrating the divided American economy, where in particular low and medium-sized consumers are weighed by the cumulative impact of inflation and increased anxiety from economic prospects,” Campchinski said.
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McDonald’s saw the weakness of consumers, although he released new dishes of $ 5 earlier this year at his US restaurants to surprise customers. Kempczinski said that in the latest revenue, the company knows that accessibility and value are “of paramount importance” in the current environment and launches more expensive meals on five main international markets.
Consumer economic struggles are not limited to US Kempinski, during the call that the company sees a “similar history” in international markets, where comparable sales decreased by 1% compared to last year. The traffic was positive for only two of the five main markets.