McDonald's Disputes 'Inaccurate' Price Hike Claims

In an open letter to customers on Wednesday, McDonald’s disputed what it called "inaccurate" claims that recent price increases have been "significantly beyond inflationary rates."

"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," McDonald’s USA President Joe 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."

"The average price of a Big Mac in the U.S. was $4.39 in 2019," he continued. "Despite a global pandemic and historic rises in supply chain costs, wages, and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%)."

As rising fast-food prices cause more would-be diners to skip the drive thru and eat at home, the fast-food industry as a whole is struggling to stay relevant to an inflation-weary public with less money to burn.

Erlinger blamed "viral social media posts and poorly sourced reports" for the public perception about the company’s price hikes and countered that the fast-food giant offers customers "meaningful value."

He also acknowledged that McDonald’s, like "all sectors of the economy," has faced "inflationary pressures" and noted that franchisees set prices at more than 95% of all U.S. restaurants.

"In doing so, they work hard to minimize the impact of price increases on our fans," Erlinger said. "This includes the everyday prices on our restaurant menu boards to special limited-time offers."

"That’s why prices for many of our menu items have risen less than the rate of inflation — and remain well within the range of other quick service restaurants," he said. "It’s also why more than 90% of U.S. franchisees are offering meal bundles for $4 or less."

The Golden Arches went into damage-control mode last year after reports of an $18 Big Mac meal went viral on social media, creating huge consumer backlash amid a cost-of-living crisis that hasn’t been seen in 40 years.

Bank of America analyst Sara Senatore wrote in a Tuesday report obtained by Axios that McDonald’s cumulative prices have increased 20% since 2022, compared to 15% at Wendy's and 16% at Burger King franchisee Carrols Restaurant Group.

Both McDonald’s and Burger King are reportedly set to debut $5 value meals following public uproar over their price hikes.

"MCD is responding with urgency: we see the $5 bundle as a placeholder for a more permanent value offer," Senatore wrote.

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