A top executive at McDonald's has voiced frustration regarding viral reports of exorbitant prices for the iconic Big Mac.
In an open letter, McDonald's USA President Joe Erlinger addressed the misleading portrayal and emphasized the company's commitment to affordability.
Top McDonald's executive complains about price increases at the fast food chain
He stated that it is both frustrating and concerning for him and many franchisees to hear about exorbitantly priced Big Mac meals.
Erlinger further emphasized that what is even more worrisome is the perception that such prices are the norm rather than the exception.
He debunked claims suggesting that Big Mac prices have risen by 100% since 2019, highlighting the inaccuracies in these "poorly sourced" reports.
McDonald's USA President Joe Erlinger stated that the typical cost of a Big Mac in the US is $5.29, which has risen by 21% since 2019.
He stressed that McDonald's is dedicated to maintaining its reputation for providing affordable options, particularly during times of heightened customer need.
McDonald's has experienced substantial profit growth, with a nearly one-third increase between 2019 and 2023.
In 2023, the company's gross profit exceeded $14.56 billion, compared to approximately $11.18 billion in 2019. As a value-oriented brand, McDonald's has recently emphasized its commitment to offering affordable options.
In line with this, the company announced the upcoming launch of $5 combo meals for a limited time during the summer.
Remarkably, pricing decisions at McDonald's are made by franchisees, who operate 95% of the company's 13,700 stores in the United States.
The widely reported $18 Big Mac meal was sold at a franchised store in Darien, Connecticut, which is located in an area with a high median household income.
The executive's letter also addressed the concerns surrounding inflation and "greedflation" raised by individuals targeting fast-food restaurants known for catering to working-class individuals.
Bank of America, in an investor note, suggested that McDonald's menu pricing should moderate, noting that it has increased by 20% since 2022, slightly more than competitors such as Wendy's (15%) and Burger King (16% at one franchisee).
Over the past decade, McDonald's menu prices have experienced a significant surge, causing concern among customers.
The fast-food giant, once known for its affordability, has faced criticism and public outrage due to these noticeable price increases.
Rising living costs have played a significant role in making McDonald's meals appear less affordable to consumers.
Finance Buzz, a reputable outlet that analyzes price changes in chain restaurants, including McDonald's, has shed light on the extent of these increases.
For example, the cost of medium fries, which was $1.59 in 2014, has now risen to $3.79, reflecting a staggering 138% increase.
Similarly, the classic McDouble sandwich, once priced at $1.19, now costs $3.19, demonstrating a significant surge of 168% in price.
These findings have sparked fury among McDonald's customers, with many expressing disappointment and questioning the company's reputation as an affordable dining option.
Critics have raised concerns about how McDonald's can sustain its business with such high prices. They argue that despite the cost increase, the food quality has not improved, leaving customers feeling unsatisfied.
McDonald's prices are now comparable to or even higher than those of its competitors, diminishing its competitive advantage.
