McDonald's: Testing Low-Cost Menu Changes

McDonald's is testing new lower-priced menu items at 1,900 U.S. restaurants.

The company launched an eight-week pilot program to help attract customers who are watching their spending closely. CEO Christopher Kempczinski told Wall Street analysts on Wednesday that the chain is experimenting with mix and match bundles. The goal is to find combinations that encourage more purchases. The company plans to roll out successful items nationally in 2027.

The move comes after McDonald's reported modest growth in U.S. sales. Comparable sales rose by 0.2% from July to September. That figure is a sharp drop from the 2.4% growth recorded during the same period last year. Data from analytics firm Placer.ai shows that foot traffic at U.S. McDonald's stores fell by 4.6% compared to the prior year.

Kempczinski admitted that the company has not fully met the expectations of low-income diners. He said the recent testing is an active effort to fix those shortcomings. He noted that the leadership team discussed extensively how the chain did not perform well enough in the second quarter. The current pilot aims to resolve those issues through real-world data.

The announcement followed the U.S. midterm elections, where affordability was a major theme. Many candidates campaigned on their ability to lower the cost of living. Gasoline prices have risen by 38% since the start of the war in Iran, according to AAA data. This increase adds pressure to household budgets.

While U.S. consumer spending remains generally resilient, lower-income families are reporting tighter limits. Inflation continues to sit above the Federal Reserve's 2% target. A larger share of income for these households now goes to essentials like fuel and food.

Ryan Sweet, chief global economist at Oxford Economics, spoke at an event in New York City on Wednesday. He observed that low-income consumers are disproportionately feeling the effects of higher food and gasoline prices. This demographic continues to bear a heavy burden of current economic conditions.