McDonald’s posts better-than-expected first quarter sales. But higher gas prices threaten demand

McDonald’s posted better-than-expected sales in the first quarter but said high gas prices and consumer anxiety over the Iran war could dent sales this spring.

The average price of a gallon of gas in the U.S. was $4.55 on Thursday, according to AAA. That was 44% higher than a year ago.

McDonald’s Chairman and CEO Chris Kempczinski said the company has been making progress bringing lower-income customers back into its stores with value meals. But fast food visits by customers with household incomes of $45,000 or less are still declining overall, and the spike in gas prices won’t help, he said.

“Clearly, when you have elevated gas prices… that is going to disproportionately impact low-income consumers. And so we expect the pressures there are going to continue,” Kempczinski said Thursday during a conference call with investors.

McDonald’s said same-store sales,........

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