Economy

McDonald’s CEO Reveals: How Economic Pressures Are Forcing Americans to Change Dining Habits in 2025

McDonald’s CEO: Lower-income Americans skip meals amid economic pressure. Value meals return.

September 3, 2025, 9:48 AM

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Executive Summary

McDonald’s CEO Chris Kempczinski warned that lower- and middle-income consumers are increasingly skipping meals and eating at home, signaling growing economic pressures and creating a “two-tier” U.S. economy.

McDonald’s has seen significant sales declines among its less affluent customer base and is reintroducing value-focused promotions, such as “Extra Value Meals,” to retain these customers.

The consumer behavior reflects increasing economic pessimism among Americans, with anticipated tariffs proposed by President Donald Trump expected to further strain lower-income household budgets.

The Story So Far

Economic pressures, including inflation and general economic anxiety, are causing lower- and middle-income Americans to cut back on discretionary spending, such as eating out, leading to a “two-tier” U.S. economy. This situation is expected to worsen as anticipated tariffs proposed by President Donald Trump are likely to increase consumer costs, further straining household budgets.

Why This Matters

The warning from McDonald’s CEO highlights the increasing economic pressure on lower- and middle-income Americans, who are now skipping meals and opting to eat at home, signaling a growing divide in the U.S. economy. This shift in consumer behavior, potentially exacerbated by proposed tariffs from President Donald Trump that would further strain household budgets, could significantly impact overall consumer spending and businesses reliant on these demographics. Consequently, companies like McDonald’s are reintroducing value-focused promotions to retain their price-sensitive customer base, reflecting a broader market adaptation to these challenging economic conditions.

Who Thinks What?

McDonald’s CEO Chris Kempczinski observes that lower- and middle-income consumers are increasingly skipping meals and eating at home due to economic pressures, contributing to a “two-tier” U.S. economy and prompting McDonald’s to reintroduce value-focused promotions.

Analysts anticipate that President Trump’s proposed tariffs will disproportionately affect lower-income Americans, as companies are expected to pass increased costs onto consumers, further straining household budgets.

Lower- and middle-income consumers are experiencing growing economic pressures, leading them to forgo meals or opt for more affordable options at home, and showing increasing pessimism regarding their personal financial outlook for 2025.

McDonald’s CEO Chris Kempczinski has warned that lower- and middle-income consumers are increasingly skipping meals, particularly breakfast, and opting to eat at home, signaling growing economic pressures on cash-strapped Americans throughout 2025. Speaking to CNBC on Tuesday, Kempczinski noted a significant decline in traffic among these customer segments, contributing to what he described as a “two-tier” U.S. economy.

Economic Pressures and Consumer Behavior

Kempczinski highlighted that traffic for lower-income consumers has fallen by double digits, indicating that many are either forgoing meals or choosing more affordable options at home. This observation aligns with recent data revealing increasing pessimism among Americans regarding the U.S. economy and their personal financial outlook for 2025, despite robust performances in U.S. equities and large-cap companies.

Analysts anticipate that the tariffs proposed by President Donald Trump will likely disproportionately affect lower-income Americans. Companies are expected to pass the increased costs from import taxes onto consumers, further straining household budgets. Consumer spending, which accounts for approximately two-thirds of U.S. GDP, could be impacted, particularly as declines among lower-income groups could hurt businesses heavily reliant on this demographic, such as McDonald’s.

McDonald’s Response to Shifting Trends

McDonald’s has observed a significant drop in sales among its less affluent customer base throughout 2025. In the first quarter, restaurant sales fell by nearly double digits among lower-income U.S. consumers compared to the previous year. This trend underscores the cumulative impact of inflation and heightened economic anxiety on these households.

While McDonald’s U.S. restaurant sales grew 2.5 percent year-over-year in the second quarter, following two consecutive quarters of domestic declines, the company noted a continued double-digit decline within its less affluent customer segment. Chief Financial Officer Ian Borden stated that the company must “work even harder to make sure we’re attractive for all consumers, including the lower income consumer.”

To address these challenges and prevent a further exodus of customers, McDonald’s and other businesses are reintroducing value-focused promotions. The fast-food chain announced on Tuesday that it will revive its “Extra Value Meals” starting September 8. These offerings include a $5 Sausage McMuffin with Egg meal, an $8 Big Mac meal, and several other limited-time specials, a strategy reminiscent of “recession specials” popularized during the 2008 financial crisis.

Outlook

The warnings from McDonald’s leadership reflect broader economic pressures on lower- and middle-income Americans, influencing their spending habits and creating a noticeable divide in the U.S. economy. As consumer confidence wanes and the anticipated effects of tariffs loom, businesses like McDonald’s are adapting their strategies to retain customers through value-oriented offerings.