{"id":43605,"date":"2025-08-14T14:21:40","date_gmt":"2025-08-14T14:21:40","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/mcdonalds-and-wendys-report-breakfast-sales-are-down-heres-what-that-says-about-the-economy\/"},"modified":"2025-08-14T14:21:40","modified_gmt":"2025-08-14T14:21:40","slug":"mcdonalds-and-wendys-report-breakfast-sales-are-down-heres-what-that-says-about-the-economy","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/mcdonalds-and-wendys-report-breakfast-sales-are-down-heres-what-that-says-about-the-economy\/","title":{"rendered":"McDonald&#8217;s and Wendy&#8217;s report breakfast sales are down. Here&#8217;s what that says about the economy."},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>The most important meal of the day is also shaping up to be the most skipped meal of the day, at least according to two of the country&#8217;s largest fast-food chains.<\/p>\n<p>McDonald&#8217;s and Wendy&#8217;s last week, during their respective earnings calls, said they&#8217;re seeing sluggish breakfast sales. The companies attributed the trend to heightened economic uncertainty and pressures facing low-income consumers.\u00a0<\/p>\n<p>&#8220;There is a lot of anxiety and unease with that low-income consumer,&#8221; McDonald&#8217;s CEO Christopher Kempczinski said on the company&#8217;s earnings call on Aug. 6.<\/p>\n<p>Despite wage gains, real incomes are down for low-income consumers, who are facing a lot of financial stress, the CEO added, citing <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/trump-tariffs-consumer-price-hikes-business-profits-dip\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">President Trump&#8217;s tariffs<\/a><\/span> as a potential contributor.<\/p>\n<p>&#8220;So real incomes are down with the low-income consumer, that absolutely is going to put pressure on visits into the [quick-service retail] industry. Second thing is there is a lot of anxiety and unease with that low-income consumer. I think we could all speculate the reasons for that, probably tariffs and the impact that, that might have, questions around employment situation,&#8221; Kempczinski said.\u00a0<\/p>\n<p>According to Kempczinski, the decline in traffic from low-income consumers \u2014 a core demographic for fast-food restaurants \u2014 is an industrywide trend, with breakfast menus across the quick service industry taking the biggest hit.<\/p>\n<h2>Why skip breakfast?\u00a0<\/h2>\n<p>As many Americans <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/cbs-news-poll-economy-views-improve-slightly\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">rein in discretionary spending,<\/a><\/span> industry analysts and executives say one of the first items on the chopping block is breakfast. Instead of heading to the drive-thru for a breakfast sandwich, more Americans are opting to grab something at home, or skip the meal altogether.\u00a0<\/p>\n<p>&#8220;When consumer uncertainty increases and consumers choose to eat another meal at home, breakfast is often the first place that they do that with,&#8221; Wendy&#8217;s interim CEO Ken Cook said on the company&#8217;s earnings call Aug. 8.<\/p>\n<p>That&#8217;s a stark contrast to previous years during which fast-food chains saw a boom in early morning traffic, leading many to <a href=\"https:\/\/www.cbs42.com\/news\/business\/ap-breakfast-is-booming-at-us-restaurants-is-it-also-contributing-to-high-egg-prices\/\" target=\"_blank\" rel=\"nofollow noopener\">add more breakfast items<\/a>. Starbucks, which launched egg bites in 2017, now has a breakfast menu with 12 separate items containing eggs. Wendy&#8217;s\u00a0<a href=\"https:\/\/www.irwendys.com\/news\/news-details\/2020\/Wendys-Launches-Nationwide-Breakfast-Today-Introduces-Americas-Soon-To-Be-Favorite-Breakfast\/default.aspx\" target=\"_blank\" rel=\"nofollow noopener\">reintroduced<\/a>\u00a0breakfast in 2020 and offers 10 items with eggs.<\/p>\n<p>The cost of fast food <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/fast-food-prices-us-lendingtree\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">has also skyrocketed<\/a><\/span> over the past decade,\u00a0<a href=\"https:\/\/financebuzz.com\/fast-food-prices-vs-inflation\" target=\"_blank\" rel=\"nofollow noopener\">according<\/a>\u00a0to 2024 report by FinanceBuzz. The personal finance site found that the price of a McDonald&#8217;s Quarter Pounder with Cheese meal from McDonald&#8217;s more than doubled in price from $5.39 in 2014 to $11.99 in 2024.\u00a0<\/p>\n<p>Still, not all fast-food chains are experiencing declines in breakfast traffic. Both Starbucks and Dunkin&#8217; told CBS MoneyWatch they&#8217;ve seen success with breakfast sales.<\/p>\n<p>Reached for comment by CBS MoneyWatch, both McDonald&#8217;s and Wendy&#8217;s pointed to their earnings reports.<\/p>\n<h2>What falling breakfast sales say about the economy<\/h2>\n<p>Experts say that American consumers&#8217; decision to skip out on breakfast points to myriad economic pressures facing low- and middle-income consumers ranging from sky-high credit card interest rates to inflation.<\/p>\n<p>&#8220;The fact that the breakfast day part is slowing now, in our opinion, speaks to heightened economic uncertainty and the lower consumer confidence that we&#8217;ve seen, and that really escalated as tariff rhetoric came into the picture,&#8221; Matthew Todd, a director at S&amp;P Global Ratings, told CBS MoneyWatch.<\/p>\n<p>&#8220;The consumer is very value focused, discerning and selective about how they&#8217;re spending. I think we would say we think breakfast is the easiest meal to cut because consumers can eat something quickly.&#8221; Matthew Todd<\/p>\n<p>Mark Zandi, chief economist of Moody&#8217;s Analytics, told CBS MoneyWatch that low- and middle-income Americans have been spending more cautiously since the end of last year, in part due to a &#8220;weakening&#8221; labor market. &#8220;That&#8217;s adding to their nervousness and their caution so far this year,&#8221; he said.<\/p>\n<p>The most recent <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/jobs-report-today-july-2025-economy-tariffs-trump-doge\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">jobs report<\/a><\/span> showed hiring slowed in July. The Labor Department also sharply revised job growth for May and June down by a combined 258,000, a sign that hiring was weaker than previously estimated. With the revisions, the U.S. added 19,000 jobs in May and 14,000 in June.\u00a0<\/p>\n<p>Experts also told CBS MoneyWatch that low-income consumers&#8217; purchasing power is already under pressure due to inflation \u2014 something <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/jobs-report-labor-market-unemployment-manufacturing-economy-trump\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">tariffs could exacerbate<\/a><\/span>. The<strong>\u00a0<br \/><\/strong>Consumer Price Index in July<strong>\u00a0<br \/><\/strong>showed inflation held steady at 2.7% on an annual basis. Restaurant prices are up 3.9% since July of last year and 0.3% from June.<\/p>\n<p>&#8220;If they have to spend more to buy a pair of shoes or get their hair cut, they&#8217;re gonna have less to spend on everything else again, including breakfast at a fast-food restaurant,&#8221; Zandi said.<\/p>\n<p>    <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation \">\n        <\/aside>\n<p>    <!-- tags --><\/p>\n<div class=\"content-author\">\n      <a href=\"https:\/\/www.cbsnews.com\/team\/mary-cunningham\/\" class=\"content-author__name\" data-invalid-url-rewritten-http=\"\">Mary  Cunningham<\/a><\/p>\n<div class=\"content-author__bio\">\n<div class=\"content-author__full-information\">\n<p class=\"content-author__text\">Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at &#8220;60 Minutes,&#8221; CBSNews.com and CBS News 24\/7 as part of the CBS News Associate Program.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/fast-food-breakfasts-consumer-confidence-economy\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The most important meal of the day is also shaping up to be the most skipped meal of the day,<\/p>\n","protected":false},"author":1,"featured_media":43606,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[957,4999,799,2517],"class_list":["post-43605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-watch","tag-inflation","tag-mcdonalds","tag-tariffs","tag-wendys"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>McDonald&#039;s and Wendy&#039;s report breakfast sales are down. 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