Why McDonald's faces a tough slog winning customers back
Fortune • • business
Key Points:
- McDonald’s U.S. growth has declined each quarter in 2026, with customer visits dropping and shares falling 32% from their February peak, despite aggressive marketing and new meal deals.
- CEO Chris Kempczinski acknowledged that too many new menu launches overwhelmed restaurants and franchisees, complicating efforts as the company pushes for costly store remodels.
- Rising beef prices, nearly doubling over five years, threaten further customer loss if price hikes are implemented, a sensitive issue given McDonald’s largely lower-income customer base.
- Rival Burger King has outperformed McDonald’s by remodeling restaurants and successfully revamping its menu, boosting sales by 20% this year with its Whopper relaunch.
- McDonald’s plans an $8.5 billion, 10-year investment to support franchisees with capital and rent relief, aiming to improve service, menu innovation, and operational efficiency, including AI integration, but investor confidence remains cautious.
