McDonald’s and Other Big Brands Warn That Low-Income Consumers Are Starting to Crack

Executives at some of America’s largest companies have said that consumers feel the pinch of higher prices.

by Alex Harring
CNBC.com

Some of America’s best-known corporations are saying their consumers are being pinched by inflation as prices continue rising.

Inflation has dominated corporate America’s discourse over the past three years following the pandemic-induced easing of monetary policy and trillions of dollars in Covid relief. Though the pace of price growth has cooled since the Federal Reserve began raising interest rates in early 2022, consumers are still feeling the squeeze — and often tightening purse strings — as costs continue climbing.

“It is clear that broad-based consumer pressures persist around the world,” McDonald’s CEO Chris Kempczinski said on the fast-food chain’s earnings call early Tuesday. “Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending.”

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