McDonald's has low expectations for fast-food sector growth - Restaurant Business Magazine
Article excerpt
Executives with fast-food chains hoping for relief from the low-traffic environment in the next few years did not get any encouraging words from McDonald’s executives last week. “We expect industry traffic growth in our wholly owned markets will be flat, while inflation will remain elevated,” CEO Chris Kempczinski said at the company’s Investor Day presentation last week. Kempczinski was talking about the company’s more developed markets, but he was in particular referring to the U.S. Ian Borden, the company’s CFO, said that the sector is developing locations faster than demand can support that development. “Traffic has been flat for the past several years now,” Borden said in an interview. “That’s partly because more capacity is being added in terms of new units than incremental customer demand, and I don’t think that’s going to change in the near-term.” Fast-food chains last year slowed their growth. Total unit count grew less than 1% in 2025, according to data from Technomic. Yet even that growth diluted what demand there had been. Sales in the quick-service sector as a whole grew just 2.5% last year, well under the 3.7% growth in menu price inflation last year. So yes, the sector served fewer customers last year. While many executives started 2026 hopeful for improvement, that hasn’t happened, as the war in Iran put immense pressure on gas prices, offsetting benefits...
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The chain has opened more than 300 locations since the end of 2023, or 2.3% unit growth over that period.