*McDonald’s is navigating a complex landscape as it reports a 2.5% year-over-year sales increase in its U.S. operations for the second quarter of 2025, with overall revenue climbing 5%. Despite this growth, the fast-food giant is grappling with a significant challenge: losing low-income customers while gaining traction among middle- and high-income diners.
As The Street reports, data from Placer.ai indicates that customer traffic at McDonald’s locations showed no significant change during the quarter, suggesting that sales growth stems from higher spending rather than increased foot traffic.
To win back cost-conscious consumers, McDonald’s has rolled out initiatives like the $5 Meal Deal and the McValue menu, featuring promotions such as the Buy One, Add One for $1 deal and the Daily Double burger meal. The return of Snack Wraps and the permanent addition of McCrispy Strips aim to boost appeal. Extended hours, with many locations now open 24/7 or past midnight, also reflect efforts to attract more customers. However, these moves have not fully stemmed the decline in low-income patronage.
CEO Chris Kempczinski, during an August 8 earnings call, highlighted the economic pressures impacting low-income consumers. “The U.S. remained challenging as visits across the industry by low-income consumers once again declined by double digits versus the prior year period,” he said.
Kempczinski noted that macroeconomic factors, such as declining real incomes and potential tariff concerns, are driving these customers to skip meals or eat at home. Breakfast sales, in particular, are suffering, as Kempczinski explained: “The breakfast daypart is the most economically sensitive daypart because it’s the easiest daypart for a stressed consumer to either skip breakfast or choose to eat breakfast at home.”
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The broader trend of reduced fast-food spending is evident in KPMG’s Consumer Pulse Summer 2025 report, which found that 69% of U.S. consumers are eating at home more often, with 85% citing cost savings as the primary reason. McDonald’s is countering this shift by leaning on its loyalty program and McValue menu, which resonate with about half of its customers.
Kempczinski emphasized the need for clear pricing to improve perceptions, stating, “Today, too often, if you’re that consumer, you’re seeing combo meals (that) could be priced over $10, and that absolutely is shaping value perceptions in a negative way.”
Adding to McDonald’s challenges, The People’s Union USA organized a weeklong boycott in June over concerns about pricing, tax practices, and labor policies, leading to a 2% year-over-year drop in customer visits. Another boycott, launched on August 1 and set to continue through the month, threatens further disruption.
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