McDonald's Corp., the world's biggest restaurant chain, plans to focus on customer service as consumers remain in "retreat mode," said Chief Executive Officer Jim Skinner.

"People are rethinking their spending habits and embracing a new sense of frugality," Skinner, 65, said today in a speech at a Boston College Chief Executives' Club luncheon.

McDonald's has introduced McCafe beverages and healthy foods to accommodate demand and "fundamental shifts in the consumer landscape," he said. That has allowed the chain to retain its "customer profile" during the recession, he said.

Sales at restaurants open at least 13 months rose 3.8 percent in the third quarter, topping analysts' estimates, the company reported Oct. 22. Net income also beat analysts' projections. Skinner said he expects the company to do better as the economy recovers.

McDonald's, based in Oak Brook, dropped 18 cents to $59.02 at 4 p.m. in New York Stock Exchange composite trading. The shares have fallen 5.1 percent this year.