McDonald’s U.S. boss puts focus on ‘value and affordability’

McDonald’s Leadership is urging operators to stay in line on their value proposition as competition for consumers continues in the restaurant space.

McDonald’s U.S. President Joe Erlinger said in a memo sent to U.S. operators following the company’s third-quarter earnings that the brand is “heading in the right direction” as it continues to gain value for more than a year.

“Amidst industry pressures, dynamic change and aggressive competition, winning the fight for shrinking traffic means perpetuating customer obsession,” Erlinger wrote in the memo viewed by CNBC. The company did not immediately respond to a request for comment.

McDonald’s on Wednesday reported that its earnings and revenue per share were below Wall Street expectations, but same-store sales were a bright spot, with all segments posting positive growth.

U.S. same-store sales rose more than expected, up 2.4%, thanks to a boost from the launch of the $2.99 ​​Snack Wrap and the launch of Extra Value Meals, which Erlinger said drove week-over-week growth.

“Although we maintain positive guest count differences, overall [guest counts] continues to decline; “This underscores the need for disciplined pricing, value and affordability,” he wrote in the note.

Erlinger said the company had the “right plan” and was poised for a strong fourth quarter, including year-over-year comparisons to last year’s E. coli outbreak, which hurt burger sales.

“We still need to keep stepping on the gas, focusing on the customer and what we can control,” he said.

CEO Chris Kempczinski told analysts this week that the fast food chain sees signs of a bifurcated consumer base among quick-service restaurants.

“QSR traffic from low-income consumers dropped to nearly double digits in the third quarter, and this trend has continued for almost two years,” he noted.

“In contrast, QSR traffic growth among high-income consumers remains strong, reaching nearly double digits in the quarter. We remain cautious about consumer health in the U.S. and our major international markets and believe pressures will continue through 2026,” he said.

In a separate memo sent to global operators, Kempczinski said the brand would continue to focus on “sharpening its value leadership to meet evolving consumer expectations and drive traffic.”

He added that McDonald’s “will invest in high-potential menu categories, particularly Chicken and Beverages, to remain competitive and drive growth.”

McDonald’s is currently testing drinks at 500 restaurants in Wisconsin and Colorado, using what it learned from now-shuttered beverage concept CosMc’s.