In a recent earning call, McDonald's CEO Chris Kempczinski addressed criticism from customers regarding the restaurant giant's higher menu prices. The issue of affordability was discussed, with a focus on re-engaging lower-income customers.

Following the release of the fourth-quarter results, McDonald's shares experienced a decline of nearly 4% on the New York Stock Exchange. While global same-store sales were up 3.4%, falling short of Wall Street's expectations, Kempczinski attributed this to the ongoing conflict in the Middle East, which had a global market impact.

However, domestically, same-store sales were up by 4.3%, aligning closely with previous quarters and company expectations. Kempczinski highlighted the strong average check growth in the United States, driven by strategic menu price increases. Nevertheless, he acknowledged a sales dip following the implementation of higher menu prices, particularly among lower-income customers who earn $45,000 or less annually.

Kempczinski emphasized the importance of affordability and noted that eating at home has become more affordable for consumers. He stated that the battleground lies with the low-income consumer segment and that McDonald's is determined to address this concern. The CEO mentioned the significance of an absolute price point in attracting these customers to the restaurants, rather than simply relying on value messaging.

McDonald's already has a $1, $2, $3 menu platform in place, which Kempczinski believes positions the company well to provide value to lower-income consumers. He mentioned that there will be local-level activities to ensure continued value for this consumer segment, though no specific details were provided.

In previous reports, concerns were raised by McDonald's customers in Connecticut over the nearly $18 price tag for a Big Mac combo meal. This disparity in menu prices is due to franchises setting their own prices and deciding whether or not to participate in corporate promotions.

Despite the challenges faced, Kempczinski expressed confidence in the resilience of McDonald's business. The CEO's remarks on LinkedIn echoed this sentiment, demonstrating a commitment to addressing the concerns raised by customers and maintaining the company's position in the market.

As McDonald's moves forward, attention towards affordability and catering to the needs of lower-income customers will be a key focus. By implementing strategies to provide value, the fast food giant aims to regain the trust and loyalty of this important consumer segment, ensuring continued success in the ever-competitive fast food industry.