Will AI Slash McDonald's Customer Base?

"McDonald's Corp. ( NYSE: MCD) has had trouble with low-income customers, its CEO, Christopher Kempczinski, said. "There's some significant inflation there that the low-income consumer is having to absorb, and I think that's affecting their outlook and their sentiment and their spending behavior." For the most part, McDonald's earnings were modest. Total revenue rose 3% to $7.1 billion. Per-share earnings rose 2% to $3.18."

"Walmart Inc. ( NYSE: WMT), the largest employer in America, recently stated that the average hourly wage of its front-line workers is $18. The figure can be as low as $14. At $14 an hour, 40 hours a week, and 50 weeks a year, a Walmart employee makes $28,000 a year. That is before taxes, which would bring the figure to $25,000, or about $2,000 a month. At an income of $15,000 to $30,000 per year, USA Facts shows that 38% of the income is allocated to housing, 18% to transportation, and 14% to food. That puts that amount for food at about $3,500 a year, or less than $300 a month."

"McDonald's has a $6 meal deal. That means a family of four can eat for $24 a meal. If the family only eats twice a day, the number goes to $48. Over the course of 30 days, the figure rises to $1,440. The family gets a certain amount of government support, but a McDonald's meal is still "expensive." Can a Walmart employee eat at McDonald's? It's a close call."

McDonald's is experiencing difficulty attracting low-income customers as inflation forces increased costs onto those consumers, affecting their outlook, sentiment, and spending behavior. Total revenue rose 3% to $7.1 billion and per-share earnings rose 2% to $3.18. Federal Poverty Level is $15,650 for a single person and $31,200 for a family of four. Walmart reports average front-line pay of $18 per hour and as low as $14 per hour, which yields roughly $25,000 after taxes or about $2,000 monthly. Households earning $15,000–$30,000 typically allocate 38% to housing, 18% to transportation, and 14% to food, leaving under $300 monthly for food. A McDonald's $6 meal deal for a family of four twice daily would cost about $1,440 monthly, making frequent McDonald's meals a close call for low-income workers. AI Destruction of Millions of Jobs Begins.

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