As the cost of living in the United States continues to soar amid the ongoing war in Iran, even some of the country's most powerful corporate leaders are expressing deep concern. A growing number of Americans are struggling to cover basic necessities, and this trend is now reflected in the earnings calls of major companies.
CEOs Sound the Alarm
The top executives of Kraft Heinz Co., Whirlpool Corp., McDonald's, and Applebee's have all voiced serious worries about consumers' financial health. Some have directly linked the situation to the Iran war. Whirlpool CEO Marc Bitzer noted that consumer demand for the company's appliances fell by 15 percent in the first quarter of 2026. For the first time in 70 years, the company suspended dividend payments to shareholders, as reported by The Wall Street Journal.
“The war in Iran amplified consumer concerns about the cost of living,” Bitzer told investors on a conference call Thursday. Kraft Heinz CEO Steve Callihane echoed similar sentiments. “They’re literally running out of money at the end of the month,” Callihane said. “We’re seeing negative cash flows in the lower-income brackets where they’re dipping into savings.”
Consumer Sentiment and Economic Indicators
Millions of Americans are grappling with high gas prices, a sluggish job market, and persistent inflation. According to a YouGov poll published this week, 61 percent of consumers disapprove of President Donald Trump’s handling of the economy—the highest share since 2022. Since the war began two months ago, the average U.S. gas price has surged from around $3 per gallon to $4.55 as of Friday. Inflation rose from 2.4 percent in February to 3.3 percent in March.
Trump’s top economic adviser, Kevin Hassett, sparked controversy last week when he boasted that credit card spending is “through the roof.” After stating that the jobs market would be “very, very strong,” Hassett told Fox News: “In fact, I had the head of one of the big five banks in my office yesterday going through the credit card data. And just as Secretary [Scott] Bessent said, credit card spending is through the roof. They’re spending more on gasoline, but they’re spending more on everything else, too.”
Corporate Responses to Tightening Budgets
Major companies are adjusting their strategies as consumers cut back. McDonald’s launched a new value menu in April, featuring breakfast, lunch, and dinner items under $3. CEO Christopher Kempczinski expressed concerns about consumer financial resources and the company’s growth prospects. “Certainly, consumer sentiment is heightened anxiety,” he said during an investor call Thursday.
Dine Brands Global Inc., owner of Applebee’s and IHOP, is seeing declining business from price-sensitive customers. “Our value-conscious guest, our price-sensitive guest is very sensitive to increases in gas prices and the basics and the cost of living,” CEO John Peyton said in an earnings call Wednesday. “They seem to be staying home a bit more and or looking for lower cost alternatives.” The company continues to promote its Two for $25 deal launched in 2025, offering an appetizer and two entrees from a special menu.
Panera, a popular fast-casual chain, took an unprecedented step in February by introducing value meals for the first time in its 39-year history, aiming to cater to cash-strapped customers.
Outlook Uncertain
Whether consumers will see relief anytime soon remains unclear. The Trump administration has repeatedly stated that prices will drop quickly once the war ends. However, no timeline has been provided, leaving Americans to navigate a historically turbulent economic period.
