A McDonald’s restaurant in Richmond, Virginia, United States, on Monday, November 3, 2025.
Al Drago | Bloomberg | Getty Images
McDonald’s Executives are urging operators to stay the course on value offerings as competition for consumers plays out in the restaurant space.
In a note to U.S. operators following the company’s third-quarter earnings release, McDonald’s U.S. President Joe Erlinger said the brand was “moving in the right direction” as it continued its valuation momentum for more than a year.
“Amid industry pressures, dynamic changes and aggressive competition, winning the battle for traffic contraction means remaining customer-obsessed,” Erlinger wrote in the memo, seen by CNBC. The company did not immediately respond to request for comment.
On Wednesday, McDonald’s reported earnings per share and revenue that fell short of Wall Street expectations, but its same-store sales were a bright spot, showing positive growth in all segments.
U.S. same-store sales rose more than expected, up 2.4%, thanks to a boost from the launch of the $2.99 Snack Wrap and the introduction of its Extra Value Meals, which Erlinger said drove week-over-week growth.
“Even though we maintained a positive variance in guest numbers, overall [guest counts] continue to decline, highlighting the need for disciplined pricing, value and affordability,” he wrote in the note.
Erlinger said the company has “the right plan in place” and said it is poised for a strong fourth quarter, including benefiting from year-over-year comparisons with the E. coli last year that hurt hamburger sales.
“We must always keep our foot on the accelerator, remaining focused on the customer and what we can control,” he said.
CEO Chris Kempczinski told analysts this week that the fast-food chain is seeing signs of a divided consumer base among quick-service restaurants.
He noted that “QSR traffic from low-income consumers declined by nearly double digits in the third quarter, a trend that has persisted for nearly two years.
“In contrast, QSR traffic growth among higher-income consumers remains strong, increasing by nearly double digits during the quarter. We remain cautious about consumer health in the United States and our key international markets, and believe pressures will continue through 2026,” he said.
In a separate note to global operators, Kempczinski said the brand would continue to focus on “strengthening value leadership to meet changing consumer expectations and increase traffic.”
He added that McDonald’s “will invest in high-potential menu categories, particularly chicken and beverages, to remain competitive and drive growth.”
McDonald’s is currently testing drinks at 500 restaurants in Wisconsin and Colorado that build on learnings from its now-shuttered beverage concept, CosMc’s.
