McDonald’s sales struggle despite value meals

McDonald’s just reported its slowest U.S. sales growth in over a year as its value push fell flat with customers who continue to struggle with higher prices.

Having trouble figuring out this economy? So is McDonald’s.

The fast-food giant reported its slowest U.S. sales growth in over a year as its value push fell flat with customers who continue to struggle with higher prices.

Overall U.S. customer count declined. Company executives said it provided too many value offers, including a $3-and-under menu and $5 bundled meal deals, that ended up muddling the chain’s message to people who are as hungry for bargains as they are for convenient food.

“We simply didn’t execute at the level we needed to in the second quarter,” CEO Chris Kempczinski said in a statement Tuesday. The company must “raise the bar in the U.S. and accelerate performance in our largest market.”

Despite widespread reports of resilient U.S. consumer spending, the economic landscape remains highly uneven, with low-income households still facing acute affordability issues. Fast-food spending in particular has taken a hit as establishments known for offering value have been forced to compete with rising food and labor costs. And despite a relatively low unemployment rate, wages have barely kept up with inflation.