The consumer is cracking

McDonald’s CEO Chris Kempczinski is suffering from a bit of PR whiplash: On one hand, he’s catching heat for that viral clip of him taking a comically reluctant nibble of the new Big Arch Burger. On the other, he’s out here blaming his mother for the whole episode. But things got a bit more serious today: The fast food chain reported earnings, and they were actually pretty solid.

Earnings and revenue came in above expectations, despite what Kempczinski called a “challenging environment,” pointing to the effects of the Iran war. He focused on high gas prices, which disproportionately affect lower-income households, squeezing McDonald’s consumers.

“I think probably it’s fair to say that...it’s certainly not improving, and it may be getting a little bit worse,” Kempczinski said of consumer sentiment on the earnings call.

The company said it expects weaker sales during the current quarter compared to the same period a year ago. Shares fell 0.14% today.

Big-ticket blues

While McDonald’s shed some light on the state of US consumers, Whirlpool is making similar remarks.

The global appliance manufacturer reported a greater-than-expected loss of $0.56 per share, and revenue declined 10% year over year, though it still beat estimates. The tough quarter was largely driven by, you guessed it, poor consumer sentiment. “War in Iran resulted in recession-level industry decline in the US as consumer confidence collapsed in late February and March,” the company said in a statement.

To combat those losses, Whirlpool is implementing the “most aggressive actions…taken in a decade to restore profitability in North America,” namely hiking prices by 10% this month, with more to come in July.

Still, Whirlpool cut its guidance in half. Shares tumbled 11.91% this afternoon.

Shipping squeeze

If that wasn’t enough, Maersk came in with some equally concerning commentary.

While the shipping and logistics company beat on both the top and bottom lines and reiterated guidance—despite a 35% year over year drop in EBITDA—CEO Vincent Clerc said that oil prices hovering around $100 per barrel is costing the company roughly $500 million per month, and that some of that is being passed on to consumers. Shares fell 8.10% today.

Maersk is a shipping titan, acting as a barometer for global trade. Its statements, alongside those of McDonald’s and Whirlpool, make it clear that American consumers are becoming increasingly stretched. From fries to fridges to freight, the message is lining up—and it’s not exactly a happy meal.—SY