Cheap meals reduce demand?

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https://www.newsnationnow.com/entertainment-news/food/mcdonalds-french-fries-production/

I am having a hard time wrapping my head around why affordable fast food options mean reduced demand for fries?

Wouldn’t the inverse be true?

In: Economics

7 Answers

Anonymous 0 Comments

>“Many of these promotional meal deals have **consumers trading down from a medium fry to a small fry**,” Werner said on an earnings call on Oct. 2. “So while we benefit from improving traffic trends, consumers **trading down in serving size** acts as a partial headwinds for our volumes.”

>Werner also said **demand has been sluggish** at a time when Lamb Weston is oversupplied. The company announced net sales declined 1% and net income declined 46% from the prior year quarter.

>“**Restaurant traffic and frozen potato demand, relative to supply, continue to be sof**t, and we believe it will remain soft through the remainder of fiscal 2025,” Werner said in a statement in the news release

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