McDonald’s growth slows, in a sign that America’s diners are retrenching
The results suggest that restaurants will have to work harder as fuel and food costs rise
Published Tue, Aug 4, 2026 · 07:59 PM
MCDONALD’S posted slowing growth for a second straight quarter, in the latest sign that elevated petrol and food prices are weighing on consumer spending.
Sales at established US restaurants rose 0.8 per cent, the company said on Tuesday (Aug 4), just short of the average estimate of analysts polled by Bloomberg. While cheque sizes rose as customers bought on pricier items, this was partly offset by a decline in visits.
In international markets, comparable sales climbed roughly in line with market expectations. McDonald’s highlighted growth in Germany, Australia, the UK and Japan, while in China comparable sales were negative.
The results suggest that restaurants are going to have to work harder to keep up their growth as rising fuel and food costs, in part sparked by the war in Iran, eat into budgets.
McDonald’s has stepped up efforts to spotlight cheaper meals while capitalising on novelty and pop-culture moments to attract diners.
In the US, the company expanded its value menu with a US$4 breakfast meal and more options under US$3. In France, McDonald’s pushed a combo priced at five euros (US$5.76). Around the world, it promoted new drinks and limited-time meals tied to the hit show KPop Demon Hunters and the Fifa World Cup.
“While our playbook is working around the world, we see an opportunity to raise the bar in the US and accelerate performance in our largest market,” said CEO Chris Kempczinski said in a statement on Tuesday.
The burger chain is embarking on a multi-year plan to become more than just a fast, cheap meal, with the aim of being the first choice for family outings and other occasions.
To achieve this, it is preparing to offer higher-quality food, including hand-breaded chicken, and change restaurant designs to feel more open and playful.
McDonald’s is also testing automation to boost efficiency, while using influencers, toys and tie-ins with other brands to bolster its online marketing.
McDonald’s named long-time executive Skye Anderson as president of its US business to bring “focus and urgency” to its efforts in the country, Kempczinski said.
She replaces Joe Erlinger, who is leaving the company after about seven years in the role. Anderson has worked at McDonald’s for nearly three decades and was most recently chief operating officer for the US.
McDonald’s shares have dropped 13 per cent this year through Monday’s close, compared with an 11 per cent gain for the S&P 500 Index. BLOOMBERG
