McDonald’s U.S. chief executive officer said reports about soaring Big Mac prices paint an inaccurate picture of the company, which has seen profits rise by about a third since 2019 and is preparing to introduce $5 combo menu items.
“It frustrates and concerns me and many of our franchisees when we hear about the sale of $18 Big Mac meals,” said Joe Erlinger, president of McDonald’s USA. Open Letter The announcement was posted on the burger giant’s website on Wednesday.
“But what’s more worrying is that people will start to believe this is the rule rather than the exception, or to claim that the price of a Big Mac has increased 100% since 2019.”
McDonald’s profits increased by nearly a third between 2019 and 2023. McDonald’s gross profits for 2023 are just over $14.56 billion. In 2019, it was nearly $11.18 billion.
McDonald’s has been touting its strength as a value brand in recent months, confirming this month that it will be launching a limited-time $5 combo menu this summer.
McDonald’s prices are set by franchisees, who the company says operate 95% of its more than 13,700 restaurants in the U.S. The $18 Big Mac that was widely reported in the media was sold at a franchisee in Darien, Connecticut, a town with a median household income of more than $250,000, according to 2021 U.S. Census Bureau statistics.
Erlinger said the average price of a Big Mac in the US is $5.29, up 21% since 2019, but that contrasts with the much bigger increases suggested in the “poorly sourced” reports.
The infographic accompanying the letter includes social media posts and Minneapolis Star Tribune article newspaper.
Erlinger said McDonald’s built its brand on affordable food and is “committed to upholding that tradition, especially at a time when our customers need it most.”
McDonald’s and other fast-food restaurants, known for offering affordable meals to working people, have recently become targets of those frustrated by U.S. inflation, or “greedflation.”
In February, burger chain Wendy’s came under fire on social media after its CEO said on an investor call that the company would experiment with “dynamic pricing.” Critics took the comment as a reference to the surge pricing often seen with airlines and ride-hailing service Uber. Wendy’s argued that this interpretation was inaccurate.
Bank of America said in a note to investors that it believes McDonald’s menu pricing “needs to ease. McDonald’s prices are estimated to have risen 20% since 2022, a faster increase than competitors such as Wendy’s (15%) and Burger King (16% in one franchise).
