Investing.com -- McDonald's Corp expects flat customer traffic and higher inflation to remain a permanent feature of the restaurant industry, Chief Executive Chris Kempczinski said on Wednesday.

"One of the things I've talked to our team about is we need to stop talking about that being a difficult environment, and just say that is the environment," Kempczinski said on CNBC's "Squawk on the Street." "Because I think, as we look out forward, we're not expecting things to change."

The burger chain reported U.S. same-store sales growth of just 0.8% in its most recent quarter as traffic to its domestic restaurants fell. Kempczinski has been warning investors and analysts about the challenging environment faced by the company and the broader industry for years.

Diners have been eating out less frequently, pushing back against higher menu prices as they face increased costs on everything from gas to groceries. From August 2025 to July 2026, industry operators surveyed by the National Restaurant Association reported a net decline in customer traffic in every month but one.

McDonald's and its competitors have turned to discounts to attract customers. Restaurant operators have seen beef prices soar, with Kempczinski noting that beef costs have nearly doubled over the last five years in the company's biggest markets. Other expenses, including labor and construction, have also increased.

"Across the board, we're seeing that inflation is sticky," Kempczinski said. "It's sticky, not just in the U.S., but around the world."

The company is focusing on taking customers from its competitors. "The biggest thing that you need to do in an environment like this is you have to be able to earn share," Kempczinski said. "You have to be able to actually grab growth from your competitors."

While McDonald's will likely have to consider price increases, Kempczinski said the chain will need to be careful not to drive diners away. He reiterated that the company believes it raised prices too quickly in the years after the Covid pandemic.

Kempczinski and other McDonald's executives will share more details about the company's plans to gain market share during its investor day on Wednesday.