McDonald's expects tough times to stay

CEO Chris Kempczinski told CNBC on Wednesday that McDonald's predicts flat traffic and high inflation will continue to weigh on the restaurant industry going forward.

“we're not expecting things to change”

Stop calling it difficult, call it normal

Kempczinski said the industry needs to stop talking about challenging conditions as temporary. Instead, companies should accept that this is simply the environment they operate in now.

“we need to stop talking about that being a difficult environment, and just say that is the environment”

Customers eating out less, pushing back on prices

McDonald's reported U.S. same-store sales growth of just zero point eight percent in its most recent quarter as traffic to domestic restaurants fell. Diners have been eating out less frequently, resisting higher menu prices.

Beef costs have nearly doubled in five years

Restaurant operators including McDonald's and its franchisees face soaring costs. Beef prices have nearly doubled over the last five years in the company's biggest markets, with labor and construction expenses also rising.

“Across the board, we're seeing that inflation is sticky”

McDonald's must steal customers from rivals

Facing tougher conditions, McDonald's is focusing on winning market share from competitors. Kempczinski said the chain must be careful with price increases to avoid driving diners away, acknowledging it raised prices too quickly after the pandemic.

“you have to be able to earn share”

Investor day will reveal growth strategy

Kempczinski and other McDonald's executives will share more details about the company's plans to gain market share during its investor day on Wednesday.