As the Iran war exacerbates cost-of-living pressures, the fast-food chain has been redoubling efforts to address affordability.

The consumer environment is “certainly not improving and it may be getting a little bit worse,” McDonald’s Chief Executive Christopher Kempczinski said on a conference call.

Profits for the first quarter were US$2 billion, up six percent from the year-ago period, while revenues climbed nine percent to US$6.5 billion.

Global comparable sales rose 3.8%.

In April, McDonald’s launched an “under US$3 menu” in the US market, promising at least 10 individual items — such as a sausage burrito and the McChicken sandwich — at the lower price point.

That is in addition to menu items such as the US$5 dollar “McDouble Meal Deal,” which is comprised of a burger with two patties, small fries, four chicken nuggets and a small soda.

“You need to have a meal deal offering there to be able to drive interest and excitement around some of our core menu items,” he said.

“But you also need entry-level price points for those folks who are maybe a little bit more stressed around affordability and are looking for ‘what can I get for US$3 or less?'”

Most developed-economy markets have employed such an approach but Kempczinski singled out France as a weaker market.

The company on Tuesday announced new promotions in France, citing rising inflation pressures on households.

The hope is to bring sales in France back to levels in top-performing markets like Britain, Germany and Australia, the company said.

Executives highlighted recent marketing drives featuring the Super Mario Galaxy and KPop Demon Hunters movies, along with nostalgia-oriented campaigns around the television show “Friends,” in driving consumer engagement and sales.

McDonald’s shares dipped 0.4% in late-morning trading.