Three Democratic senators challenged McDonald’s over menu price increases they say outpace inflation and operating costs, putting pressure on America’s largest fast-food chain to justify its pricing strategy.
Industry-wide price hikes
McDonald’s Big Mac jumped from $5.66 in 2022 to $6.05 in 2023, while its Quarter Pounder with Cheese meal rose from $9.45 to $10.20. The 10-piece Chicken McNuggets climbed from $4.90 to $5.60. Medium fries increased from $3.75 to $4.10, and the McFlurry dessert went from $3.39 to $3.89.
Similar increases appeared across the industry. Chipotle’s chicken burrito bowl surged from $8.50 to $9.95. Burger King’s Whopper meal rose from $9.99 to $11.29. Wendy’s Dave’s Single combo increased from $7.29 to $8.59. Subway’s footlong tuna sub jumped from $8.99 to $10.49, and KFC’s 8-piece meal climbed from $21.99 to $24.99.
By the numbers
McDonald’s operating expenses increased 16.5% between 2020 and 2023, while net profit margins grew from 26% to 32%. The company’s net annual income surged 79% to $8.5 billion during this period.
The chain spent nearly $4 billion on stock buybacks in 2022 and over $3 billion in 2023, even as customers faced higher menu prices.
Corporate response
McDonald’s defended its pricing, calling the senators’ letter inaccurate and saying it misrepresents the franchise business model. The company cited its $5 Meal Deal as evidence of its commitment to affordability, noting these items cost less now than in 2020.
Industry-wide scrutiny
The investigation into McDonald’s reflects broader concerns about fast-food pricing. Warren and Rep. Madeleine Dean previously accused major food companies like General Mills and Coca-Cola of profiteering through “shrinkflation” – reducing product sizes while maintaining or raising prices.
“McDonald’s isn’t a happy place if families are being price gouged for a Happy Meal,” Sen. Wyden said.
Impact on consumers
Rising fast-food prices have forced many households to cook at home more often. The trend threatens the industry’s traditional role as an affordable dining option.
McDonald’s recently revived its $5 value menu and expanded promotions to attract budget-conscious customers. However, senators labeled the company’s overall pricing strategy as “textbook greedflation.”
Looking ahead
The senators requested details about McDonald’s franchisee pricing guidance and whether any regular menu items have seen price cuts outside promotions. Their investigation could influence industry pricing practices and consumer accessibility.
