The news: McDonald’s CEO Chris Kempczinski expects pressures on US consumers to remain “well into 2026,” he said on the company’s Q3 earnings call.

• The deepening cost of living crisis is especially painful for lower-income households, who are struggling to manage higher rents and childcare costs alongside a renewed spike in food prices.
• While wealthier households have more room to maneuver, they are also intensely value-focused: QSR traffic among higher-income consumers increased nearly double-digit percentages in Q3, according to Kempczinski.

Zooming in: McDonald’s is well-positioned to benefit from consumers’ incessant search for value.

• The fast-food chain introduced its McValue menu in January, which includes three limited-time meal deals as well as the option to buy one item and get an additional one for $1 more.
• The company also brought back its Extra Value Meals in September, which promise to deliver a minimum discount of 15% compared with buying all the items in the deal separately.
• Those efforts paid off in Q3, with US comparable sales rising 2.4% YoY. The company expects comparable sales to rise even faster in Q4, helped by its value platform and the return of Monopoly, as well as favorable comps against last year’s E.coli outbreak.

Our take: McDonald’s playbook is relevant to both fellow QSRs and the retail industry. By successfully combining value initiatives with marketing and product innovation, the company is gaining share with higher-income consumers and staying relevant with less affluent households.