McDonald’s CEO Chris Kempczinski presented a key macro indicator of the financial apocalypse during an earnings call on Tuesday. I think it’s pretty legitimate, even though it centers around french fries.
Kempczinski said bluntly on the earnings call that “[their] view remains unchanged, which is our base expectation is for a mild recession in the U.S.” (It’s not going to be mild, but let’s continue as if Kempczinski is correct). One of the key macro indicators the CEO used to make his statement was the decrease in units per transaction at McDonald’s locations across the world.
“We are seeing a slight decrease in units per transaction. So things like did someone add fries to their order, how many items are they buying per order, we’re seeing that go down in most of our markets around the world slightly, but it’s still going down,” Kempczinski noted.
From McDonald’s CEO Chris Kempczinski, this is the key macro indicator to watch: pic.twitter.com/SmEGKKVlbC
— Joe Weisenthal (@TheStalwart) April 26, 2023
Kempczinski appeared confident despite the apocalyptic direction of global financial markets and the economy. Customers choosing not to purchase sides and additional units at McDonald’s establishments speaks to the macro-global trend of everyone being annoyed at how expensive life has become.
My personal feeling is that McDonald’s might not even exist in the next ten years, but as so much of their business is wrapped up in real estate, they might be able to weather the worst of the storm. Their executives will. But my gut feeling is that they won’t be able to find employees before they lose their business due to economic upheaval.
French fries might sound like a small indicator to make such a sweeping forecast, but it is socially and psychologically massive. As we move through this total catastrophe of Bidenflation and other macro-global issues such as exported inflation from China, you should be prepared to give up a lot of your luxuries.
Dear Kay: I Just Saw The Banking News. Are We Screwed? | @DailyCaller
If you bought a home with a mortgage recently, probably yes. But here’s some advice anyway. https://t.co/AclSjtGbl5
— KAY SMYTHE (@KaySmythe) March 13, 2023
You’ll go out less to eat. You’ll eat less in general because the stores will continue to increase their pricing. You’ll travel less. You’ll see your friends less. You’ll stop buying crap clothes and start trading with your friends.
Your entire existence will become about making ends meet, and you’ll wonder who you need to blame for this. Well, after reading this article, should you end up in this position, you have only yourself to blame. (RELATED: ‘I Brought Some Cyanide’: Another Billionaire Investor Predicts Devastating Economic Collapse)
Stop depending on the government and big corporations to save this situation, because they won’t. Start getting a handle on the sustainability of your lifestyle today, and you might be able to handle the mental health toll the next decade is going to have on this country.