McDonald's profits surge with clever pricing and menu price hikes

McDonald's is experiencing a shift in its customer demographics as it gains middle- and higher-income customers while losing visits from lower-income diners who are feeling the pressure of high inflation. The chain expects to raise menu prices by about 10% this year, on top of a 10% increase last year. Despite a dip in US traffic, McDonald's posted strong results with an 8.1% increase in same-store sales, driven by an uptick in traffic from more affluent consumers. The fast-food industry as a whole is also seeing a slowdown in traffic.