Posted on 02/08/2024 10:47:48 AM PST by Diana in Wisconsin
The CEO of McDonald's admitted Monday that the sales for the fast food giant have dipped amid increased menu prices that have not gone unnoticed by customers.
The Chicago-based chain has taken heavy criticism over its Big Mac combo that is priced at nearly $18, among other menu hikes, and has promised to focus on affordability, the New York Post reported.
"I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability," McDonald’s CEO Chris Kempczinski said on an earnings call with analysts.
Some global same-store sales grew by 3.4%, short of the 4.7% that was expected by Wall Street. In addition, some low-income customers have stopped patronizing the chain as inflation has caused prices to jump, Kempczinski said.
"Eating at home has become more affordable," Kempczinski said. "The battleground is certainly with that low-income consumer."
Prices at McDonald's are still expected to increase at a slower pace, restaurant analyst Mark Kalinowski told The Post.
Last week, a McDonald’s location in Connecticut was criticized after a customer was charged $7.29 for an Egg McMuffin and nearly $5.69 for a side of hash browns. The franchise in Darien, Connecticut was called out for charging $17.59 for a Big Mac combo.
Fast food prices in general could climb even higher as minimum wage hikes go into effect across the country. In California, many fast food workers will earn $20 per hour beginning April 1.
McDonald's and Chipotle have signaled that prices will have to increase in response to the high labor costs.
(Excerpt) Read more at foxla.com ...
There are "poor" people paying those prices? I'm fairly affluent and wouldn't pay that much. Outrageous.
I'm sure the high wages are to blame. The labor there used to be mostly kids in high school happy just to get a foot into the workforce so they put a few dollars in their pocket and move on to better things. They only made minimum wage and worked hard.
Now people are expecting to work there as a career.
They’re paying over min wage in my state. Supply and demand has driven wages up.
Quarter pounder will become an 1/8th pounder. Big Mac will become Little Mac. Kids meal will become infants meal.
Automation is the only way out of the quandary—and it is doable, particularly if they have less choices in the menu.
IOW…either “where’s the beef” is going to get harder to locate or more automation and less real employees.
Asked my doctor what single thing I could do to better my health. He told me to stay away from restaurant hamburgers period! Seriously now...what kind of quality meat can you get for what they pay? I bet it’s like $.25 per lb.
Sorry sacks demand a “living wage” for a job that literally takes a day to learn, and then they complain when their food costs more. SMH.
You know the stuff they sweep up in the supermarket meat department after they close.....that's pretty much it.
Only things I like from McDonald’s is there hash browns and sausage egg and cheese biscuits.
Plus beef prices are going up, egg and chicken prices going up due to bird flu outbreaks.
Is it true that they now add insects to their meat? Serious question!
Not just McDs but everywhere food has become sample size.
And then they want $6?
$4 for some potato frieswhen did potatoes become a specialty item?
Actually, McDonald’s is probably one of the largest buyers of beef in the world. What they can get at their cost is probably better than what’s at your grocery store.
I saw their double Big Mac the other day. That would have to be the messiest sandwich ever.
I’m cheapest sob you’ll ever find. Big Mac (on the app deals) $1 or $2 and a senior Coke .70. Same deal on a breakfast sandwich and coffee. I happen to like the stuff. I’ve been eating it for sixty years, not dead yet.
“Here’s your Sixteenth-Pounder, sir.”
I can spend less at Culver’s than I can at mcdonald’s.
nope. MiniMac. meal will come with 2 french fries and a 1oz soda cup.
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