CEO Weekly — Business News, Leadership & Lifestyle – Copy

McDonald’s inflation outlook is shifting from a temporary challenge to an operating assumption. CEO Chris Kempczinski said that restaurant traffic could remain largely flat while inflation stays elevated, putting more pressure on value, customer frequency and restaurant efficiency as the company rolls out its NEXT strategy. Key Takeaways McDonald’s is planning around largely flat industry traffic and continued inflation pressure rather than assuming conditions will improve quickly U.S. comparable sales rose 0.8% in the second quarter of 2026, while comparable guest counts declined McDonald’s plans approximately $8.5 billion in franchisee support through 2036 as part of its NEXT strategy The company is targeting about 250 basis points of gross restaurant-level efficiency improvements McDonald’s is preparing for a restaurant market where weak traffic and higher costs may persist rather than fade quickly. CEO Chris Kempczinski said the company no longer expects a sudden return to robust industry traffic growth. During a CNBC interview, he said McDonald’s needs to stop describing the backdrop as a difficult environment and instead recognize that “that is the environment.” The comments came as McDonald’s outlined new operating and financial targets under NEXT, including approximately $8.5 billion in franchisee support through 2036. The company is also targeting about 250 basis points of gross restaurant-level efficiency gains. The combination puts greater attention on a central challenge for McDonald’s. The chain is trying to generate more customer visits while protecting affordability, even as food, labor and construction costs remain elevated. McDonald’s Inflation Outlook Resets Growth Assumptions Kempczinski’s remarks mark a shift in how McDonald’s is framing the restaurant environment. Rather than assuming traffic and cost pressures will normalize quickly, management is planning around slower industry traffic and persistent inflation. The chief executive said beef costs in the company’s largest markets have nearly doubled over the past five years. Labor