Americans might still be saying, “I’m lovin’ it” when it comes to McDonald’s crispy, salty fries and iconic cheeseburgers, but they’re souring on the chain’s prices as inflation continues to pinch household budgets. Earlier this month, McDonald’s reported quarterly earnings that disappointed investors. Most notably, the fast food giant reported a 0.2% drop in sales at U.S. restaurants open for at least a year, the first drop since early 2025.

Nonetheless, McDonald’s stock rose after its earnings report, in part because Wall Street was expecting a bigger drop in U.S. sales, according to the Associated Press. In addition, strong overseas sales offset the domestic decline. Globally, the company’s same-store sales increased by 1.3% on a year-over-year basis during the July to September timeframe.

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McDonald’s stock is down about 9% so far this year, though, a reflection of investors’ waning appetite for fast food stocks. The sector as a whole is seeing a decline in foot traffic due to economic challenges including high gas prices, the AP noted.

The burger giant also has potential legal trouble brewing. A federal judge ruled last month that a class-action lawsuit over its cult-favorite McRib sandwich can proceed. The complaint alleges that the popular pork patty is made without any actual rib meat, although its marketing leads customers to believe otherwise, according to Fox Business.

On the recent earnings conference call, McDonald’s executives said the primary factors dragging down domestic sales were too many new promotions, which confused diners, along with poor customer service. In addition, executives said that a big promotional blitz tied to the World Cup failed to deliver, CNN reported.

Company officials assured investors that they’ve taken steps to address the dip in sales. These moves include bringing back popular digital offerings such as a $2 breakfast sandwich deal and rolling out more specialty beverages. McDonald’s is also in the middle of an eight-week test of two kinds of value bundles, with plans to roll out the more successful of the two options early next year.

Executives acknowledged that the company needs to get back to basics with cheap offerings that customers can enjoy regularly without feeling like they are splurging.

“You need to have good entry-level value, and particularly for that low-income consumer, they’re looking for great entry-level value, and we have not had that in place to the level that we are satisfied with,” McDonald’s Chairman and CEO Chris Kempczinski said on the earnings call.

These initiatives follow a September announcement from McDonald’s stating that it plans to spend $8.5 billion over the next decade to remodel its stores as well as invest more in employee training and product development to target diners hungry for higher-protein menu items.

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