NEW YORK — McDonald's reported higher profits Thursday as the chain's value promotions and pop culture-oriented marketing efforts lifted sales in most leading markets.
As the Iran war exacerbates cost-of-living pressures, the fast-food chain has been redoubling efforts to address affordability.
The consumer environment is "certainly not improving and it may be getting a little bit worse," McDonald's Chief Executive Christopher Kempczinski said on a conference call.
Profits for the first quarter were $2 billion, up six percent from the year-ago period, while revenues climbed nine percent to $6.5 billion.
Global comparable sales rose 3.8 percent.
In April, McDonald's launched an "under $3 menu" in the US market, promising at least 10 individual items -- such as a sausage burrito and the McChicken sandwich -- at the lower price point.
That is in addition to menu items such as the $5 dollar "McDouble Meal Deal," which is comprised of a burger with two patties, small fries, four chicken nuggets and a small soda.
"You need to have a meal deal offering there to be able to drive interest and excitement around some of our core menu items," he said.
"But you also need entry-level price points for those folks who are maybe a little bit more stressed around affordability and are looking for 'what can I get for $3 or less?'"
Most developed-economy markets have employed such an approach but Kempczinski singled out France as a weaker market.
The company on Tuesday announced new promotions in France, citing rising inflation pressures on households.
The hope is to bring sales in France back to levels in top-performing markets like Britain, Germany and Australia, the company said.
Executives highlighted recent marketing drives featuring the Super Mario Galaxy and KPop Demon Hunters movies, along with nostalgia-oriented campaigns around the television show "Friends," in driving consumer engagement and sales.
McDonald's shares dipped 0.4 percent in late-morning trading.