McDonald’s Sees Flat Traffic, Sticky Inflation as New Normal

McDonald’s expects sluggish customer traffic and persistent inflation to remain defining features of the restaurant industry, prompting the fast-food giant to focus more heavily on winning market share from competitors.

CEO Chris Kempczinski said Wednesday that the company no longer views the current operating backdrop as a temporary challenge. Instead, McDonald’s is preparing for an environment where higher costs and limited traffic growth continue for the foreseeable future.

The outlook comes after McDonald’s reported U.S. same-store sales growth of just 0.8% in its latest quarter, while customer traffic at domestic restaurants declined. The broader restaurant industry has also struggled as consumers dine out less frequently and resist higher menu prices amid elevated costs for groceries, fuel and other everyday expenses.

From August 2025 through July 2026, restaurant operators surveyed by the National Restaurant Association reported a net decline in customer traffic in all but one month.

McDonald’s and rival restaurant chains have increasingly relied on discounts and value promotions to attract price-conscious diners. At the same time, operators face higher expenses for ingredients, labor and construction. Kempczinski said beef costs in McDonald’s largest markets have nearly doubled over the past five years.

“Across the board, we’re seeing that inflation is sticky,” Kempczinski said, adding that the trend is affecting markets worldwide, not just the United States.

Against that backdrop, McDonald’s plans to prioritize taking market share from competitors rather than depending on stronger industry-wide traffic. Kempczinski said gaining share will be essential for generating growth under current conditions.

The company may still need to raise menu prices to offset higher costs, but management intends to proceed cautiously. Kempczinski reiterated that McDonald’s believes it increased prices too quickly in the years following the Covid pandemic, potentially hurting affordability perceptions among consumers.

McDonald’s executives are expected to provide further details on the company’s market-share strategy and growth plans during its investor day.