What to Watch For
Gunther noted analysts should watch sales for McDonald’s new lineup of specialty beverages. McDonald’s touted the new lineup during the earnings call, reporting sales were “ahead of plan” in the U.S. after launching in May. “Within the restaurant sectors we track, beverages/snacks is the clear outperformer, supported by frequency and affordability, as consumers substitute full meals out with coffee, refreshers, and snacks,” Gunther said. The analyst said this might indicate diners are opting for a “trade-down, not trade-out” decision when faced with current economic conditions. “Consumers may be shifting dining dollars toward in-home eating but are leaving room in the budget for daily drink habits.”
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Key Background
Polling consistently shows consumers believe America is facing an affordability crisis. A Gallup poll published in April found 31% of Americans believed the high cost of living was their biggest financial problem in 2026, above concerns like energy costs, housing costs and health care costs. President Donald Trump’s approval rating on handling the economy has also fallen this year, with a recent Reuters/Ipsos poll finding the president had a -47% net approval rating on cost of living, as he has repeatedly derided affordability concerns as a “hoax” and touted the U.S. as having the “hottest” economy in the world. That same poll found more Americans trusted Democrats over Republicans on handling the economy, for the first time in almost a decade.
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Further Reading
ForbesTaco Bell Visits Dropped Over 30%—More Than Initially Reported—Amid OutbreakBy Mary Whitfill Roeloffs
ForbesTaco Bell Parent Company Says Sales Already Recovering After Cyclospora Outbreak Hit Foot TrafficBy Mary Whitfill Roeloffs