“McDonald’s isn’t the best value anymore,” said Martinez, 50, who has three children. “People are saying, ‘Well, if I’m going to pay $5 for a fry, I’ll just go to this place over here.’”
McDonald’s latest financial report suggests that sentiment has grown among its traditional customer base. While the company blames its disappointing first-quarter results on fewer people dining out in general, some experts suggest that budget-conscious consumers have turned to chains such as Taco Bell and Chili’s for meals that they see as offering a better value.
“People are just being more judicious about cutting back on visits,” Kempczinski said during a call with analysts. “We’re not immune to the volatility in the industry or the pressures that our consumers are facing.”
Generally speaking, the price gap between fast-food, fast-casual and sit-down restaurants has blurred, said Sara Senatore, an analyst at Bank of America. That makes it harder to justify spending more than $10 at McDonald’s when a few extra dollars can buy meals at Wingstop, Shake Shack or other fast-casual restaurants that are perceived as higher quality, she said.
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