McDonald's Slips to 2028 Target as Consumer Strains

McDonald's latest Q2 numbers were underwhelming, with US comparable sales growing just 0.8%.

CFO Ian Borden attributed part of the miss to 'self-inflicted execution problems', but also acknowledged a challenging consumer environment that saw QSR industry traffic in several major markets remain flat-to-negative.

The company is now expecting to reach its target of 50,000 restaurants globally by 2028, two years later than initially planned, due to the pressured consumer environment and cumulative inflationary impact on development costs.

McDonald's has been pricing defensively, with base menu prices below those of near competitors in beef, chicken, and beverages. This is a clear indication that the company is struggling to maintain value in a strained consumer market.