Is McDonald's Losing Too Many Customers?

McDonald's is one of the most popular fast food chains in the United States.

Despite its reputation, the hotel chain struggles to connect with its customers.

Other fast food chains such as Chipotle are facing declining sales as customers look for cheaper alternatives.

This news came as a shock as McDonald's is a US based company.

But after the restaurant reports its second-quarter earnings, the chain will face declining sales and try to win back its customers.

Chipotle and McDonald's were among the first restaurant companies to release a Q2 report,

but other chains will release their earnings soon. Wingstop, Starbucks and Taco Bell will announce profits next week.

For many people who go to fast food restaurants for their expensive menu items,

the rising prices of food items have replaced this confidence.

Food prices have increased by an average of 7% in the last three months.

This affects US household spending and visits to fast food restaurants such as McDonald's.

According to the NPD Group, households with a gross income of $75,000 or less reduced fast food spending by 6%.

Instead, many see the supermarket chain as a refuge from falling retail prices across the country.

Food prices have increased by 12.2 percent in the past 12 months, far more than hotel prices.