With McDonalds prices climbing, and the chain reporting record profits…customers are sounding the alarm on how much is…too much.
During McDonalds latest earnings call, profits surpassed the estimated earnings of $6.52 billion with the chain achieving $6.92 billion and a total increase of global sales up by 8.8%. The profit increase is due largely to the menu price hikes implemented across the board or “strategic menu price increases” as the chain put it.
McDonalds has been gaining steam among middle-class and higher income customers but losing steam with low-income customers who accounted for a 3.3% drop in visits.
But many complaints have been unfolding across the internet and on R/PovertyFinance many sounded off on the steep prices of McDonalds and other fast food franchises. With many saying that we’re feeling not the effects of inflation but…greedflation.
“Fast food ain’t worth it anymore. Once they got rid of the $1 soda any size i was done with McDonalds.“
“It’s actually cheaper for me to eat out at an actual sit down restaurant than to get fast food. Last time I went to McDonald’s was like 2 years ago or so and it cost me damn near $16 to to get enough to fill up on.“
“6 McNuggets is $7.50 where I live. No fries, no drink, just 6 stupid nuggets.“
“I got a sundae it was $2.50 but also got a small fry for my wife. $2.50 also. Are you kidding me? A small fry was a dollar a few years ago.”
“I stopped eating fast food altogether. Just don’t have the money for it anymore.“
With over 8,000 likes, and 1.4k comments on the post, the overall sentiment was disgust at the state of prices at businesses which used to provide value for their customers.
And its not just McDonald’s people are sounding off over, almost every chain is feeling the heat. Burger King customers also took to Reddit to complain about gross pricing at the burger chain.
Chipotle has had four price increases within the past two years, and recently on an earnings call reported another increase coming down the pipeline which would be passed onto the customer.
McDonald’s Chief Financial Officer Ian Borden said that the newly named chicken sandwich McCrispy, has also helped to drive profits: “Our McCrispy chicken sandwich continues to be an important driver of chicken share growth, having first launched in markets like Canada and Germany and now a billion-dollar brand “
Analyst David Tarantino said in reference to economic uncertainties, that McDonalds is “one of the best positioned brands … to navigate a tougher backdrop.”
Too bad they seem to now be catering to a different crowd altogether…a crowd that makes more money and can afford where McDonald’s prices are heading. In that case, they might do better to change their business model, and offer up better quality food to go with their…better quality (higher) prices.
