McDonald’s officials announced Monday that the company will focus more on affordability after reporting weaker-than-expected sales at its U.S. stores.
The company’s CEO, Chris Kempczinski, indicated that the company would slash prices on some of its menu items.
“Eating at home has become more affordable,” Kempczinski said. “We actually saw that cohort” — referring to customers making $45,000 or less — “decrease in the most recent quarter,” he said.
The company has been the subject of multiple viral videos where social media users complained about the high cost of eating at the fast-food chain. One video documented how a Big Mac meal costs $18 in Darien, Connecticut, while others showed how a single hash brown costs $3 at certain locations.
The company’s focus on affordability marks a shift from a November earnings call when Kempczinski announced that price hikes could come soon.
McDonald’s isn’t the only company that has contemplated raising prices within the last few months, especially in California. Other fast-food chains like Chipotle and Fatburger have indicated that menu price hikes could be on the horizon.
The move comes as a new minimum wage law for fast-food employees in California takes effect in April. Under the law, employees at the companies would make $20 per hour.
Marcus Walberg, whose family operates four Fatburger restaurants in Los Angeles, recently told Business Insider that he sees no option but to raise prices and make other changes to adapt.
In November, Chipotle announced it would raise prices by a “mid-to-high single-digit” percentage in California.
As for McDonald’s, Kempczinski now says the company would focus on its “D123” strategy, which prices some items between $1 and $3.