Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Business

McDonald’s exec says average menu item costs 40% more than in 2019

by May 31, 2024
May 31, 2024
McDonald’s exec says average menu item costs 40% more than in 2019

A top McDonald’s executive is weighing in on claims that the company has jacked up its prices.

Joe Erlinger, president of McDonald’s USA, said in an open letter Wednesday that the average price of McDonald’s menu items is up around 40% since 2019. The breakdown comes in response to claims on social media from House Republicans, among others, that the fast-food company upped prices by more than 100%. 

“Americans across the country are making tough calls about where to spend their hard-earned money,” Erlinger said. “And while we’ve been working hard to make sure our fans have great reasons to visit us, it’s clear that we — together with our franchisees — must remain laser-focused on value and affordability.”

Erlinger said the average price of a Big Mac meal today is $9.29, up 27% from $7.29 in 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%.

Erlinger added the cost increases are tied to similar increases in input costs such as crew salaries and cost of goods.

“For a brand that proudly serves nearly 90% of the U.S. population every year, we feel a responsibility to make sure the real facts are available,” Erlinger said.

Consumer prices have increased 3.4% over the past year, according to the latest data from the Bureau of Labor Statistics. In response to persistently steeper costs, some consumers are pulling back across the restaurant industry, a trend that has not spared the fast-food giant.

McDonald’s recently reported same-store sales below expectations in its first-quarter earnings report. The company will also soon offer a $5 value meal for roughly a month, beginning June 25.

That offering will include a McChicken or McDouble, four-piece chicken nuggets, fries and a drink, CNBC previously reported.

Analysts at BTIG characterized the promotion as being more about value perception than a profit driver.

“In our view, this new deal is more about value perception, seeking to change the media narrative around McDonald’s recent price hikes to refocus around a deep(er) value offering. We believe the new one-month meal deal could actually hurt sales (check decline) and margins, but help reinstate McDonald’s as a value leader in the industry,” the analysts said in an investor note.

An independent advocacy group of McDonald’s franchisees is pushing to make the discounted offering sustainable for operators, saying it will require greater investment from the company if it sticks around menus beyond the initial monthlong run.

“There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonalds,” the board of the National Owners Association wrote in a letter to membership that was viewed by CNBC.

— CNBC’s Kate Rogers contributed to this report.

This post appeared first on NBC NEWS
previous post
Orange juice prices are going through the roof — forcing some makers to consider alternative fruits
next post
Supreme Court rules in favor of NRA in key First Amendment case

Related Posts

The U.S. economy rolls on, adds 303,000 jobs...

April 6, 2024

MSNBC President Rashida Jones steps down after four-year...

January 14, 2025

Retail sales slumped 0.9% in January, down much...

February 15, 2025

Largest U.S. sportsbooks join forces to tackle problem...

March 28, 2024

As Apple enters AI race, iPhone maker turns...

October 7, 2024

People are earning more from side gigs and...

July 11, 2024

Some consumers are punting big purchases like pools...

May 19, 2024

Albertsons sues Kroger after judge rules against grocery...

December 11, 2024

Settlement reached in lawsuit between Ron DeSantis allies...

March 29, 2024

Spotify is increasing U.S. prices for many of...

June 4, 2024

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • Israeli official vows ‘We have more surprises coming up’ for Iran following wave of airstrikes

      June 14, 2025
    • ‘All-in’: GOP lawmakers divided on US involvement as Trump pushes Iran for diplomatic end

      June 14, 2025
    • Democratic lawmakers criticize Israel’s defensive strikes against Iran’s nuclear sites

      June 13, 2025
    • Israel’s drone strikes in Iran show why US must halt China’s land grab here: experts

      June 13, 2025
    • Biden-appointed judge thwarts Trump’s attempt to clean house at consumer safety agency

      June 13, 2025
    • Nearly half of Americans back Israeli airstrikes on Iran, poll shows

      June 13, 2025

    Categories

    • Business (1,261)
    • Politics (5,975)
    • Stocks (904)
    • World News (457)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved