Treat yo self (to some earnings)

They call this the “little treats economy,” where financial insecurity has given rise to purchasing small luxuries that make you feel better. Hey, if you can’t afford a house, maybe you can afford that new Labubu doll and still get the same rush of dopamine.

Fast food used to be that one of those small, inexpensive treats—but inflation and creeping menu prices have come to bite the world’s biggest burger chain in the buns. Meanwhile, tariff upheaval has given way to stability for one online retailer that lets you spruce up your studio apartment without breaking the bank.

We’re knee-deep in earnings season, so let’s check in on two very different companies that just reported this morning and see how consumers are feeling about them.

McDowner

McDonald’s is still seeking a turnaround after years of slowing spending among consumers who have been hit hard by inflation; particularly low-income customers. The company rolled out a boatload of promotional menu items to entice people back to the Golden Arches, but it backfired: CEO Chris Kempczinski said too many new offerings slowed operations, increased wait times, and lowered customer satisfaction last quarter.

McDonald’s managed to beat EPS estimates in Q2, but revenue fell short. It didn’t help that US same-store sales rose just 0.8% last quarter, a serious slowdown since early 2025. It’s no wonder Ronald McDonald is putting the pedal to the metal: The company announced that Skye Anderson will shift from her role as head of McDonald’s global business services and take over as president of its US business.

Her job is to “bring focus and urgency” to the company’s biggest business segment and turn things around. Shareholders seem skeptical: The stock rose just 1.12% today.

A way fair price

The rough housing market is keeping people focused on making their current living conditions as cozy as possible. That’s been great for online furniture retailer Wayfair, which today touted its strongest quarter over quarter earnings growth since 2020. “In fact, revenue growth in the US was the best we’ve seen in the entire post-COVID period, with nearly 9% year-over-year revenue growth, continuing the high single digit share spread we’ve held since last fall,” wrote CEO Niraj Shah.

But it’s not just cost-conscious customers boosting Wayfair’s bottom line. The company’s Perigold business, which focuses on taking luxury items out of showrooms and putting them on the internet, has proven a huge success with high-income shoppers. Revenue from Perigold has surged by double digits every year since it launched in 2017, and last quarter sales climbed a whopping 35% year over year.

It’s no wonder shares soared 29.97% today.

Americans be shopping

Consumers are okay with spending so long as it helps them feel good. Burgers that cost an arm and a leg are quickly getting cut from the budget, while people are springing for that new duvet cover if it means they can feel better about their homes. It’s a trend that has come to define the US economy, and one that we’ll continue to see play out over the course this earnings season.—MR