Current:Home > NewsMcDonald's president hits back at claims Big Mac prices are too high amid inflation -ForexStream
McDonald's president hits back at claims Big Mac prices are too high amid inflation
View
Date:2025-04-27 20:03:14
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! (7)
Related
- Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
- Nicki Minaj cancels New Orleans concert hours before due to 'doctor's orders'
- Oprah Winfrey Influenced Me To Buy These 31 Products
- Konstantin Koltsov, Former NHL Player and Boyfriend of Tennis Star Aryna Sabalenka, Dead at 42
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- Americans love pensions. Where did they go? Will they ever return?
- Drew Lachey Weighs In On Brother Nick Lachey's Love Is Blind Hosting Gig
- Men used AR-style rifles to kill protected wild burros in Mojave Desert, federal prosecutors say
- California DMV apologizes for license plate that some say mocks Oct. 7 attack on Israel
- New Orleans Saints to sign DE Chase Young to one-year deal
Ranking
- South Korean president's party divided over defiant martial law speech
- Gannett news chain says it will stop using AP content for first time in a century
- Oprah Winfrey Shares Why Her Use of Weight Loss Drugs Provided “Hope”
- The Best Tummy Control Swimsuits of 2024 for All-Day Confidence, From Bikinis to One-Pieces & More
- Gen. Mark Milley's security detail and security clearance revoked, Pentagon says
- University of Maryland lifts Greek life ban, hazing investigation into five chapters continues
- Purdue’s Edey, Tennessee’s Knecht, UNC’s Davis headline the AP men’s college All-America teams
- Florida Legislators Ban Local Heat Protections for Millions of Outdoor Workers
Recommendation
Meet first time Grammy nominee Charley Crockett
The Truth About Those Aaron Taylor-Johnson Bond Casting Rumors
After sailing around the world, Cole Brauer says she's more grounded than ever
Russia's Vladimir Putin hails election victory, but critics make presence known despite harsh suppression
San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
Rapper Phat Geez killed in North Philadelphia shooting, no arrests made yet, police say
Olympic law rewrite calls for public funding for SafeSport and federal grassroots sports office
Earlier Springs Have Cascading Effects on Animals, Plants and Pastimes