McDonald’s US boss focuses on ‘value and affordability’

McDonald’s Leadership urges operators to continue providing value propositions as competition for consumers across the restaurant space.

In a memo to US operators following the company’s third-quarter earnings, McDonald’s US President Joe Erlinger said the brand was “moving in the right direction” as it continues to drive value for more than a year.

“Amid industry pressures, dynamic change, and fierce competition, winning the battle to reduce traffic means remaining customer-obsessed,” Erlinger wrote in the memo seen by CNBC. The company did not immediately respond to a request for comment.

On Wednesday, McDonald’s announced that earnings per share and revenue fell short of Wall Street expectations, but its same-store sales were a bright spot, posting positive growth across all segments.

U.S. same-store sales rose more than expected, rising 2.4%, thanks to a boost from the launch of the $2.99 ​​Snack Wrap and the introduction of additional value meals, which Erlinger said led to week-over-week growth.

“While we maintained a positive gap in guest numbers overall [guest counts] “We continue to decline – underscoring the need for disciplined pricing, value and affordability,” he wrote in the note.

Erlinger said the company has “the right plan in place” and said it is preparing for a strong fourth quarter, including benefiting from year-over-year comparisons with an E. coli outbreak last year that dented burger sales.

“We still need to keep our foot on the gas, while staying focused on the customer and what we can control,” he said.

The fast-food chain is seeing signs of a diverging consumer base among quick-service restaurants, CEO Chris Kempczinski told analysts this week.

“QSR traffic from low-income consumers declined by nearly double digits in the third quarter, a trend that has continued for nearly two years,” he noted.

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

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

He added that McDonald’s will “invest in high-potential menu categories — especially chicken and beverages — to remain competitive and drive growth.”

McDonald’s is currently testing the drinks in 500 restaurants across Wisconsin and Colorado that build on lessons learned from its now-shuttered beverage concept, CosMc’s.