‘Running out of money’: Kraft, McDonald’s, Whirlpool CEOs all flag same concern over US consumers — protect your wealth

‘Running out of money’: Kraft, McDonald’s, Whirlpool CEOs all flag same concern over US consumers — protect your wealth Jing Pan Sun, August 16, 2026 at 1:45 PM GMT+2 9 min read KHC MCD WHR PLNT HKC Photo by Paras Griffin / Getty Images; Photo Illustration by Justin Sullivan / Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. American consumers have kept the economy afloat for years, even as inflation, high borrowing costs and rising grocery bills squeeze household budgets. But some of the country's biggest corporate leaders are warning that shoppers may be hitting a breaking point.

Kraft Heinz CEO Steve Cahillane offered one of the bluntest assessments of the financial strain facing lower-income consumers. Must Read Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time.

What to do before the window closes "They're literally running out of money at the end of the month," Cahillane said in a May 2026 interview (1). "We're seeing negative cash flows in the lower-income brackets where they're dipping into savings. " The company behind brands like Heinz, Kraft and Philadelphia is now cutting prices (2) on some products that have grown too expensive, increasing promotions and rolling out smaller package sizes at lower price points.

Cahillane added that the industry has endured years of "volume degradation" because consumers had to absorb "too much price. " He also warned that another round of price increases could put more pressure on already-stretched household budgets. "We could see more significant inflation and nobody wants to see that," he said.

Cahillane isn't the only CEO sounding the alarm. McDonald's CEO Chris Kempczinski has flagged pressure on consumers, pointing to "heightened anxiety (3). " The company's CFO Ian Borden also noted that higher gas prices are hitting lower-income households especially hard, saying the company was seeing those consumers pull back on spending, while higher-income customers remained much more resilient.

Elsewhere, Whirlpool CEO Marc Bitzer has described a sharp pullback in demand for big-ticket appliances, while North America executive president, Juan Carlos Puente, has pointed to "recession-level industry contractions," with discretionary demand down roughly 15% (4). There are signs outside corporate earnings reports that household budgets are under strain. Credit card balances stood at $1.

25 trillion in the first quarter of 2026, while auto loan balances climbed to $1. 69 trillion (5). Likewise, Americans are saving less of what they earn: The personal saving rate fell to just 2.

7% in June (6). Story Continues The Federal Reserve's latest Report on the Economic Well-Being of U. S.

Households paints an even clearer picture, with 16% of adults saying they didn't pay all their bills in full during the previous month (7). Among those who struggled with their bills, 42% said they paid at least one bill late. Put it all together and the picture isn't that every American is running out of money.

It's that households with the least financial breathing room have less room to absorb higher costs — and some are relying on credit or savings to keep up. Although headline inflation has cooled from its pandemic-era highs, the cost-of-living crisis is still hitting consumers where it hurts. According to data originally put out by the U.

S. Bureau of Labor Statistics, food prices in the U. S.

have increased over 33% since the beginning of 2020 (8), while housing costs are up about 33% as well (9). Energy prices, meanwhile, have surged over 42% in the same period (10). It's also worth remembering that even when inflation slows, consumers don't get those earlier price increases back.

Higher prices become the new baseline for household budgets, leaving families with less room to absorb unexpected expenses or build savings. According to the Inflation Calculator put out by the Federal Reserve Bank of Minneapolis (11), $100 today has roughly the same purchasing power as just $11. 74 did in 1970.

For households already living close to the edge, that loss of purchasing power can make it harder to build an emergency fund, pay down debt or invest for the future. The good news? Throughout history, savvy investors have always found ways to shield themselves from inflation's bite and protect their purchasing power over the long term.

Here's a look at three time-tested strategies. Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going A classic safe haven When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.

Its appeal is simple: Unlike fiat currencies, the yellow metal can't be printed at will by central banks. Gold is also considered the ultimate safe haven. It's not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.

Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold's role in a resilient portfolio. "People don't have, typically, an adequate amount of gold in their portfolio," Dalio told CNBC last year. "When bad times come, gold is a very effective diversifier.

" Despite a recent pullback, gold prices have surged by more than 30% over the last 12 months (12). If you're looking for a way to get in on the gold rush, a gold IRA is one option for building up your retirement fund with an inflation-hedging asset. Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while providing the significant tax advantages of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver . If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today .

A time-tested income play Gold isn't the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land.

At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation. Over the past 10 years, for example, the S&P Cotality Case-Shiller U. S.

National Home Price NSA Index has jumped by 88% (13), reflecting strong demand and limited housing supply. Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn't exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).

The good news? You don't need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Mogul is a real estate investment platform offering an easier way to get exposure to this income-generating asset class.

As a real estate investment option offering fractional ownership in blue-chip rental properties , it gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or late-night tenant calls. Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.

Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18. 8%.

Offerings often sell out in under three hours , with investments typically ranging between $15,000 and $40,000 per property. Sign up for an account and browse available properties here to start investing today. Another option is Lightstone DIRECT , which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT's direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate. With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000. Consider getting expert advice Real estate can be a great way to diversify your portfolio, but that doesn't mean every property is a good investment.

A financial advisor can help crunch the numbers and build a plan that works. But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That's where Advisor.

com can come in, connecting you with an expert near you, for free. Advisor. com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background.

Plus, their network comprises fiduciaries, who are legally required to act in your best interests. Just enter a few details about your finances and goals and Advisor. com 's AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.

Finding the right advisor isn't always easy — there's no one-size-fits-all solution. It's why Advisor. com lets you set up a free initial consultation , with no obligation to hire, to see if they're the right fit for you.

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Fortify your riches with 4 key assets A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change This fund has historically paid 8% or higher for 25 months, with just a $100 minimum to start — 4 ways to grow your cash without the stock market Join 250,000+ readers and get Moneywise's best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now . Article Sources We rely only on vetted sources and credible third-party reporting.

For details, see our ethics and guidelines . Bloomberg ( 1 ); The Wall Street Journal ( 2 ); Yahoo Finance ( 3 ), ( 4 ); Federal Reserve Bank of New York ( 5 ); U. S.

Bureau of Economic Analysis ( 6 ); Board of Governors of the Federal Reserve System ( 7 ); Federal Reserve Bank of St. Louis ( 8 ), ( 9 ), ( 10 ); Federal Reserve Bank of Minneapolis ( 11 ); Gold Price ( 12 ); S&P Global ( 13 ) This article provides information only and should not be construed as advice. It is provided without warranty of any kind.