Current:Home > InvestMcDonald's president hits back at claims Big Mac prices are too high amid inflation -BeyondWealth Learning
McDonald's president hits back at claims Big Mac prices are too high amid inflation
View
Date:2025-04-13 06:32:39
The president of McDonald's wants you to know that $18 Big Macs are the "exception" and not the rule, according to an open letter released Wednesday.
Joe Erlinger, president of McDonald’s USA, addressed the letter to "our U.S. fans," saying he wrote the message to "make sure the real facts are available" to McDonald's millions of yearly customers.
"Recently, we have seen viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates," Erlinger wrote. "This is inaccurate."
McDonald's executives have previously touted a "laser-focus" on value and affordability after complaints about overpriced food and decreased foot traffic led several fast food chains to scale back prices.
Not-so-happy meal:As fast food prices surge, many Americans say it's become a luxury
Protect your assets: Best high-yield savings accounts of 2023
"I can tell you that it frustrates and worries me, and many of our franchisees, when I hear about an $18 Big Mac meal being sold – even if it was at one location in the U.S. out of more than 13,700," Erlinger wrote.
"More worrying, though, is when people believe that this is the rule and not the exception, or when folks start to suggest that the prices of a Big Mac have risen 100% since 2019."
Franchisees own and operate more than 95% of all U.S. restaurants, said Erlinger, meaning menu prices are ultimately up to franchise owners who may raise prices to account for increased business and "inflationary pressures."
McDonald's exec refutes 100% price hike rumors
Regardless of the conditions of inflation, however, Erlinger categorically denies rumors that prices have increased by 100% or at a rate double or triple general inflation in the last five years.
The letter lists the average price of a Big Mac as $5.29, a 21% increase from $4.39 in 2019.
A myths and facts chart presented at the bottom of the letter addresses other specific claims, including the pricing of specific menu items (the cost of a 10-piece nugget meal has increased 28%, not 95.5%, since 2019), and more general assertions (the average McDonald's item has seen a price increase of 40% over the past five years, not double the national inflation rate.)
Fast food prices are up 4.8% since last year and 47% since 2014, while general inflation has risen 24%, according to the Bureau of Labor Statistics.
A recent report by USA Today used survey information compiled by a team of reporters in 18 markets across the country to compare prices over the past 10 years. The survey found that an average medium Big Mac meal has risen in price from $5.69 in 2014 to $9.72 in 2024, an increase of about 70%. The price of a medium Big Mac meal ranged in price from $7.89 in Houston to $15 in Seattle.
$15 Big Macs:As inflation drives up fast food prices, map shows how they differ nationwide
The executive closed the letter by plugging upcoming savings promotions and the McDonald's app, saying, "more than 90% of U.S. franchisees are offering meal bundles for $4 or less."
"I hope you’ll see the programs we’re launching nationally and locally as meaningful to you," he said.
Fast food chains focus on affordability
McDonald's, like other fast food chains, has faced criticism for soaring prices in recent years, resulting in less revenue from lower-income consumers and reduced foot traffic in stores.
McDonald's has since promised a reduction in prices and expressed interest in exploring more ways to win customers back, which could include $5 meal deals and freebies.
Burger King rushed to beat McDonald's to the punch, announcing its own $5 meal deal set to arrive in June.
This came around as Wendy's announced a $3 breakfast combo, which includes an English muffin sandwich with egg, cheese, and bacon or sausage, and a side of seasoned potatoes. This is on top of weekly free chicken nugget deals through the Wendy's app and limited promotions, like a one-cent Jr. Bacon Cheeseburger from May 28 through June 2 for National Hamburger Day.
Contributing: Paul Davidson and Daniel de Visé.
veryGood! (9)
Related
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- Supreme Court to consider clash of Idaho abortion ban with federal law for emergency care
- Baltimore leaders accuse ship’s owner and manager of negligence in Key Bridge collapse
- Trevor Bauer accuser may have been a fraud. But most reports of sexual violence are real.
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- Dramatic dashcam video shows good Samaritans rush to pull man from burning car
- Contact restored with NASA’s Voyager 1 space probe
- Celine Dion talks accepting stiff person syndrome diagnosis, first meeting husband at 12
- Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
- 'Extreme caution': Cass Review raises red flags on gender-affirming care for trans kids
Ranking
- A Mississippi company is sentenced for mislabeling cheap seafood as premium local fish
- Trial opens for former Virginia hospital medical director accused of sexual abuse of ex-patients
- Why Anne Hathaway Says Kissing Actors in Chemistry Tests Was So Gross
- Seven big-name college football standouts who could be in for long wait in 2024 NFL draft
- Woman dies after Singapore family of 3 gets into accident in Taiwan
- The Chinese swimming doping scandal: What we know about bombshell allegations and WADA's response
- A retirement expense of $413,000 you'll need to be prepared for
- Protests embroil Columbia, other campuses as tensions flare over war in Gaza: Live updates
Recommendation
Why we love Bear Pond Books, a ski town bookstore with a French bulldog 'Staff Pup'
Below Deck's Captain Kerry Titheradge Fires 3rd Season 11 Crewmember
Nets hire Jordi Fernandez: What to know about Brooklyn's new head coach
Put a Spring in Your Step With Kate Spade's $31 Wallets, $55 Bags & More (Plus, Save an Extra 20% Off)
Angelina Jolie nearly fainted making Maria Callas movie: 'My body wasn’t strong enough'
Trump trial in hush money case gets underway with opening statements and first witness
A retirement expense of $413,000 you'll need to be prepared for
Candace Cameron Bure Reveals How She “Almost Died” on Set of Fuller House Series