Have the prices at McDonald's become too expensive?

McDonald's will focus on making its food more affordable after management reported a decline in spending by lower-income customers.

McDonald's CEO Chris Kempczinski said in a recent conference call that customers earning $45,000 or less have been spending significantly less recently, noting that “eating at home has become more affordable.”

He pointed out that high inflation hits low-income Americans the hardest.

“That consumer is under pressure,” he said of customers earning less than $45,000 a year. “From an industry perspective, we've actually seen a decline in that cohort in the last quarter, largely because eating at home has become more affordable.”

According to the U.S. Bureau of Labor Statistics, home-cooked food prices rose only 1.3% in 2023, while take-out food prices rose 5.2%.

Kempczinski said the company plans to focus on “affordability” and “absolute pricing” rather than temporary offers in the coming months.

“The battleground is certainly low-income consumers. And I think in 2024 we're probably going to see more attention on what I would call affordability,” he said.

Several viral posts in recent months have pointed out the high prices of certain McDonald's restaurants, particularly one at a rest stop in Darien, Connecticut, where A Big Mac meal costs $18 on site.

The meal at this particular restaurant is even more expensive on Grubhub, costing $21.59 at press time.

Most McDonald's branches are owned by franchisees who can basically set their own prices, the company says.

The company is also using the nostalgia factor to attract new customers. In December, McDonald's opened the first of several spin-off restaurants called CosMc's in Bolingbrook, Illinois. The small restaurants are space-themed and focus on drinks and breakfast. It is based on McDonald's popular alien mascot from the 80s and 90s.

“One way for consumers to go back to these QSR restaurants is to find out what brought them there in the first place,” Laura Murphy of Bolt PR told NBC News. “McDonald's did that last year… they started bringing nostalgia back.”

Meanwhile, Taco Bell is expanding its offerings to 10 meals under $3. The company told NBC News it “remains committed to providing our fans with delicious food at affordable prices.”

Yum Brands also reported weaker-than-expected growth at its top brands, which include KFC, Taco Bell and Pizza Hut, NBC News reports.

Chipotle, on the other hand, saw an increase in sales and customer traffic despite a 3 percent increase in menu prices in October. CNBC reported that the company saw a 7.4 percent increase in customer traffic in the fourth quarter.

This article was originally published on TODAY.com.