McDonald’s CEO Chris Kempczinski is warning that persistently high beef costs continue to strain the restaurant industry as inflation remains elevated.
During the company’s third-quarter 2025 earnings call Wednesday, Kempczinski told investors that inflation has proven to be “sticky,” with beef costs running well above historical norms and price pressures expected to continue into next year.
“It’s still a difficult environment, and inflation is proving to be sticky,” Kempczinski said. “I mean, we’re expecting to see there’s going to be above-average inflation next year. … We’re seeing very, very high inflation around beef prices versus what we’re used to historically, and so I think all of that just keeps putting pressure on the industry.”
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The McDonald’s chief executive said the challenging environment calls for the “grind-it-out” philosophy championed by Ray Kroc, which emphasizes discipline and persistence through difficult times.
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“Fortunately, our system is executing well,” Kempczinski added. “We’ve got good alignment with our franchisees. So, I think we’re going to continue to do well, but I don’t want to minimize some of the pressures as well that exist in the industry today and that we’re expecting to continue into next year.”
Beef prices are at a record high after a drought that left cattle inventory at the lowest level in 70 years.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MCD | MCDONALD’S CORP. | 298.41 | -7.26 | -2.38% |
According to the latest consumer price index data from the U.S. Bureau of Labor Statistics, beef and veal prices rose 14.7% year-over-year in September, while uncooked ground beef was up 12.9%.
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Despite these headwinds, McDonald’s recently brought back its famed Monopoly game for the first time in nearly a decade with lucrative prizes as the brand continues to try to lure back customers.
Earlier this year, the popular Snack Wrap also made its long-awaited comeback.
McDonald’s did not immediately respond to FOX Business’ request for comment.
FOX Business’ Eric Revell contributed to this report.
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