McDonald's Fights Back Against Exaggerated Price Increase Reports
McDonald's is denying reports suggesting that the average price of a Big Mac has doubled since 2019. The company acknowledged that some franchisees have set higher prices for their menu items but emphasized their commitment to affordability and value leadership in the industry.
According to McDonald's U.S. President Joe Erlinger, the average price of a Big Mac in the U.S. was $4.39 in 2019, and it is now $5.29 – an increase of 21% (not 100%). Erlinger acknowledged that there have been marked slowdowns in store traffic due to inflation-weary customers eating out less often.
Despite the global pandemic and historic rises in supply chain costs, wages, and other inflationary pressures, McDonald's remains committed to keeping affordability at the forefront for its customers. The company is reportedly considering adding a $5 value meal promotion to the menu for a limited time to win back consumers.
The price increases have been a source of frustration and concern not just for customers but also for many franchisees. Erlinger noted that an $18 Big Mac meal, which has been cited as proof of radically higher prices, is an exception rather than the rule. He urged people to be aware that such reports can be misleading.
McDonald's is not alone in facing price pressures. The fast food industry as a whole has seen sales slow down and traffic dip due to consumers pulling back on spending in response to higher prices.
The company's CEO, Chris Kempczinski, emphasized McDonald's commitment to value leadership during an April 30 analyst call. He noted that the company wrote the playbook on value and is committed to upholding its position within the industry.
McDonald's is not alone in facing price pressures. The fast food industry as a whole has seen sales slow down and traffic dip due to consumers pulling back on spending in response to higher prices.