Current:Home > FinanceMcDonald's president hits back at claims Big Mac prices are too high amid inflation -Quantum Capital Pro
McDonald's president hits back at claims Big Mac prices are too high amid inflation
PredictIQ Quantitative Think Tank Center View
Date:2025-04-09 02:21:16
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! (5599)
Related
- Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
- Is it safe to look at a total solar eclipse? What to know about glasses, proper viewing
- U.K. police investigate spear phishing sexting scam as lawmaker admits to sharing colleagues' phone numbers
- UConn takes precautions to prevent a repeat of the vandalism that followed the 2023 title game
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- Cole Brings Plenty, '1923' actor, found dead at 27 after being reported missing
- Evers vetoes a Republican bill that would have allowed teens to work without parental consent
- Air Force contractor who walked into moving propeller had 'inadequate training' when killed
- McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
- What happens during a solar eclipse? Experts explain the awe-inspiring phenomena to expect on April 8
Ranking
- Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
- See the evidence presented at Michelle Troconis' murder conspiracy trial
- What's next for Caitlin Clark? Her college career is over, but Iowa star has busy months ahead
- See the list of notable past total solar eclipses in the U.S. since 1778
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- Two years after its historic win, a divided Amazon Labor Union lurches toward a leadership election
- In second Texas edition, CMT Awards set pays homage to Austin landmark
- Cole Brings Plenty, '1923' actor, found dead at 27 after being reported missing
Recommendation
John Galliano out at Maison Margiela, capping year of fashion designer musical chairs
California doctor travels to Gaza to treat children injured in Israel-Hamas war
Why Sam Hunt Is Loving Every Bit of His Life As a Dad to 2 Kids Under 2
Stephen Strasburg retires, will be paid remainder of contract after standoff with Nationals
Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
Two years after its historic win, a divided Amazon Labor Union lurches toward a leadership election
Foster children deprived of benefits: How a loophole affects the most vulnerable
Dawn Staley thanks Caitlin Clark: 'You are one of the GOATs of our game.'