McDonald’s warns SNAP disruptions may hit low-income diners as shutdown drags on
Info via Dow Jones/Market Watch.
McDonald’s has warned that the partial freeze in U.S. food assistance payments is adding strain on low-income consumers, as the government shutdown continues to disrupt Supplemental Nutrition Assistance Program (SNAP) benefits across the country.
Speaking on the company’s recent earnings call, CEO Chris Kempczinski said the interruption in payments “added to the stress” already felt by lower-income households. “If you’re higher income, you don’t feel it as acutely — but lower income, for sure, you’re feeling it acutely,” he said, noting the shift is starting to weigh on spending patterns in the fast-food sector.
Executives at other major food companies echoed those concerns. Tyson Foods’ chief growth officer Kristina Lambert told investors the firm is seeing consumers “reallocate spending from non-food to more food categories,” underscoring a shift in household budgets as government support falters.
The longest shutdown in U.S. history has left millions of Americans facing uncertainty over SNAP payments. The benefits pause — following recent cuts to the program — has strained food banks and spurred a court fight over the flow of aid. Roughly 40 million Americans rely on SNAP, which represents around 12% of national food and beverage spending, according to TD Cowen analyst Robert Moskow.
A bill to keep the government funded through 30 January cleared the Senate on Monday, and the House is expected to vote on it Wednesday. Even if passed, officials say it could take days before SNAP services and other programs are fully restored.
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The comments underline the growing risk to U.S. consumer-spending resilience as the shutdown drags on, potentially weighing on Q4 sales for low-margin food and retail firms reliant on value-oriented shoppers.
