McDonald’s has recently addressed what it views as exaggerated reports about its price increases across various platforms, clarifying the actual figures amidst the spread of viral misinformation. Joe Erlinger, the President of McDonald’s U.S., responded to the claims, particularly debunking a rumor that the cost of a Big Mac has doubled since 2019. He confirmed that the price of a Big Mac in the U.S. was $4.39 in 2019, and it has since risen to $5.29, marking a 20.5% increase, not the purported 100%.
Joe Erlinger, president of McDonald's USA, said in an open letter 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 that the company upped prices by more than 100%.https://t.co/2YSAwHBPlv pic.twitter.com/VByahPW5nx
— CNBC (@CNBC) May 30, 2024
Erlinger emphasized the company’s commitment to transparency, given that McDonald’s serves nearly 90% of the U.S. population annually. He expressed frustration over a specific post from last summer claiming an $18 price for a Big Mac meal in Connecticut, dismissing it as an outlier. He further explained that while McDonald’s franchisees—who own and operate 95% of the U.S. locations—set their own prices, they strive to keep price increases to a minimum.
Beyond the Big Mac, McDonald’s acknowledged that other menu items have experienced more significant price hikes. For instance, the cost of medium fries has surged by 44% from $2.29 in 2019 to $3.29 now. Overall, the company reported a 40% rise in the average price of all its menu items over the past five years. This increase is partly due to a 40% rise in costs related to labor, paper, and food, which is notably higher than the overall consumer price increase of 21% since December 2019.
McDonald's denies reports that the price of the average Big Mac has doubled since 2019. The chain insists that the average U.S. Big Mac was $4.39 in 2019 and now costs $5.29 — an increase of "only" 20.5%. https://t.co/7vz8E7mJhx
— WISH-TV News (@WISHNews8) May 30, 2024
The impact of inflation has been felt with a slowdown in store traffic during the initial months of this year, prompting McDonald’s to introduce more promotional deals. In an effort to draw customers, McDonald’s plans to launch a $5 meal deal next month across the U.S., which includes a sandwich, a four-piece McNugget, small fries, and a small drink.
The enormous price increase of McDonald's since 2019, as confirmed by its CEO in spooked letter about $18 Big Mac pic.twitter.com/DiyiK12VWy
— News News News (@NewsNew97351204) May 29, 2024
Erlinger hopes these new deals will provide significant value to customers and emphasized the importance of maintaining affordability in collaboration with franchisees. This focus on customer value and affordability appears central to McDonald’s strategy moving forward in navigating the challenges of a changing economic landscape.
Major Points
- McDonald’s refutes exaggerated claims about its pricing, clarifying that the Big Mac price increased by only 20.5% since 2019, contrary to reports of doubling.
- The company’s U.S. President, Joe Erlinger, emphasized transparency and debunked a viral claim of an $18 Big Mac meal in Connecticut as an anomaly.
- Price increases extend beyond the Big Mac, with items like medium fries seeing a 44% price rise since 2019 due to increased costs in labor, paper, and food.
- Overall, McDonald’s menu prices have surged 40% over the last five years, outpacing the general U.S. consumer price increase of 21%.
- In response to slowing store traffic and economic inflation, McDonald’s plans to launch a $5 meal deal to maintain customer loyalty and offer value.
RM Tomi – Reprinted with permission of Whatfinger News
