McDonald’s CEO says low traffic and high inflation are here to stay

McDonald's Corp CEO Chris Kempczinski said on Wednesday that flat customer traffic and higher inflation will remain permanent features of the restaurant industry. Kempczinski acknowledged the need to adapt to the challenging environment rather than view it as difficult. The burger chain reported only 0.8% growth in U.S. same-store sales, as traffic to its domestic restaurants fell.

The company has been facing increased costs on everything from gas to groceries due to higher menu prices. Inflation has been sticky worldwide, and beef prices have nearly doubled in the company's biggest markets over the last five years. McDonald's is focusing on earning share from its competitors and will need to be careful not to drive diners away by raising prices too quickly.

The company will share more details about its plans to gain market share during its investor day on Wednesday.