McDonald’s says menu prices haven’t increased much, despite many customers claiming otherwise.
In a rare statement, McDonald’s US President Joe Erlinger addressed allegations that prices have become unreasonable.
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Erlinger called these claims are “inaccurate”, blaming “inadequately sourced reports” and social media posts.
He added that the company has faced “inflationary pressures,” noting that franchisees set prices in 95% of the locations they own and operate.
“The prices of many of our menu items have gone up by less than the rate of inflation,” Erlinger said.
“And stay well inside the reach from other quick service restaurants.”
The average cost of a Big Mac is around $5.29, Erlinger said.
This represents a 21% increase from $4.29 in 2019, which he said was responsible for “historic” increases in wages, costs and supply chain issues.
Last year, McDonalds came under fire following reports of an $18 Big Mac Meal at a location in Connecticut.
News of a $25 McNugget meal also went viral online.
“More concerning, however, is when people believe this is the rule rather than the exception, or when they begin to suggest that Big Mac prices have increased by 100% since 2019,” Erlinger wrote.
“I fully expect prices at your local McDonald’s to be an area of conversation and focus in the coming months,” he added.
“In doing so, I hope you see the programs we’re launching nationally and locally as meaningful to you. At the same time, I hope it’s helpful to see some of the common myths I’ve encountered and the facts that go along with them.”
OUT OF REACH
Some customers also claimed that menu items were smaller than in previous years, adding that the cost of the brand’s famous hash browns had increased by several dollars.
Last month, the Bureau of Labor Statistics confirmed that food prices increased by about 0.3% from March.
O money needed to order takeout has also seen a 0.3% month-over-month increase and a 4% jump in the Consumer Price Index (CPI) since April 2023.
Around 78% of consumers believe that ordering fast food is now a luxury due to inflation, according to research by Yahoo! Finance.
At least 62% said they will eat out less in 2024 due to the cost.
CPI and inflation explained
The Consumer Price Index is how the federal government measures inflation.
Every month, the Bureau of Labor Statistics shares its CPI numbers with breakdowns of which items have variable prices.
The CPI shows how much prices have risen or fallen over the previous 12 months.
The calculation process is complex, but it measures price changes for urban consumers, those who live or work in an American metropolitan area.
Although it does not cover everyone, it measures prices for around 90% of the population.
CEO Chris Kempczinski said there would be “menu innovation” in 2024 with a focus on value and lower prices.
This includes a $5 meal, launching on June 25th.
The meal will come with one of three entree options – McChicken, McDouble or four-piece McNugget – along with fries and a drink.
However, the meal deal has not yet been officially confirmed, but is expected to be soon, for CBS MoneyWatch.
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