Current:Home > InvestMcDonald's president hits back at claims Big Mac prices are too high amid inflation -WealthMindset
McDonald's president hits back at claims Big Mac prices are too high amid inflation
View
Date:2025-04-12 08:50:46
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! (1)
Related
- 'Most Whopper
- Patrick Mahomes wins Super Bowl MVP for third time after pushing Chiefs to thrilling OT win
- Shop J. Crew’s Jaw-Dropping Sale for up to 95% off With Deals Starting at Under $10
- Was this Chiefs' worst Super Bowl title team? Where 2023 squad ranks in franchise history
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Dunkin' Donuts debuts DunKings ad, coffee drink at Super Bowl 2024 with Ben Affleck
- New Mexico officer killed in stabbing before suspect is shot and killed by witness, police say
- Nor'easter, snow and storms forecast across New England through Tuesday
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- Kansas City Chiefs Coach Andy Reid Reacts to Travis Kelce’s Heated Sideline Moment at Super Bowl 2024
Ranking
- Federal court filings allege official committed perjury in lawsuit tied to Louisiana grain terminal
- Kyle Shanahan relives his Super Bowl nightmare as 49ers collapse yet again
- Disney on Ice Skater Hospitalized in Serious Condition After Fall During Show
- North Carolina voter ID trial rescheduled again for spring in federal court
- Grammy nominee Teddy Swims on love, growth and embracing change
- 'Has anyone seen my wife?': Ryan Reynolds searches for Blake Lively during Super Bowl 58
- Super Bowl security uses smart Taylor Swift strategy to get giddy pop star from suite to field
- Mobileye CEO Shashua expects more autonomous vehicles on the road in 2 years as tech moves ahead
Recommendation
McConnell absent from Senate on Thursday as he recovers from fall in Capitol
Storming of Ecuador TV station by armed men has ominous connection: Mexican drug cartels
The Chiefs have achieved dynasty status with their third Super Bowl title in five years
The San Francisco 49ers lost Super Bowl 58. What happens to the championship shirts, hats?
Grammy nominee Teddy Swims on love, growth and embracing change
Leading Virginia Senate Democrat deals major setback for Washington sports arena bill
All the times number 13 was relevant in Super Bowl 58: A Taylor Swift conspiracy theory
Can candy be a healthy Valentine's Day snack? Experts share how to have a healthy holiday.