McDonald's sees dip in low-income spenders as Burger King gains modest ground

According to Numerator, low-income diners—defined as households with annual incomes of $40,000 or less—cut their spending at McDonald’s by 2.4% year over year in the most recent quarter, translating to roughly $310 million in lost revenue. This marks the chain’s first quarterly decline among this segment in the past year. In contrast, Burger King achieved a modest 0.3% gain over the same timeframe.

McDonald’s chief executive Chris Kempczinski said the company’s new value menu, targeting items priced at $3 or less, has faced inconsistent execution across locations. Overall U.S. comparable sales growth slowed to 0.8% in the second quarter. Rivals, including Burger King and casual-dining chain Chili’s, have reported stronger performance by promoting their own value deals, while some customers say they are shifting to other chains or cooking at home. Nevertheless, Numerator noted that McDonald’s revived fried apple pie continues to attract about 11.7% of U.S. households.