McDonald's CEO Says High Inflation, Weak Traffic Are Restaurant Industry's "New Normal"

McDonald's (MCD) CEO Chris Kempczinski said on Sept. 23, 2026, that subdued customer traffic growth and persistent high inflation will continue pressuring the restaurant industry, calling the conditions a permanent operating reality rather than a temporary downturn. "I've talked to my team about the need to stop calling this a difficult environment and instead just say this is the operating environment, and we don't expect it to get better," Kempczinski said in an interview. The company's most recent quarter showed U.S. same-store sales rose just 0.8%, with foot traffic declining at domestic locations. National Restaurant Association operator data showed net traffic declines in every month but one between August 2025 and July 2026. Beef costs in McDonald's largest markets have nearly doubled over the past five years, while labor and construction expenses have also risen, squeezing margins. Kempczinski said inflation is highly sticky globally, and McDonald's is focusing on taking market share from competitors while weighing cautious price increases.