The trend: Rising inflation and growing economic anxiety are driving low- and middle-income consumers to cut back on dining out, according to McDonald’s CEO Chris Kempczinski. On the company’s earnings call, he noted that industry-wide QSR foot traffic from low-income consumers fell nearly 10% in Q1, with middle-income traffic not far behind.

That pullback tracks with broader industry trends. The National Restaurant Association’s monthly survey showed only 29% of restaurant operators reported YoY traffic gains in March—up from just 13% in February, but still signaling demand softness.

The numbers: McDonald’s reported mixed Q1 results that reflected notable pressure in the US. Domestic same-store sales dropped 3.6% YoY—its second straight quarterly decline and steepest since Q2 2020. Analysts had expected only a 1.7% dip.