print-icon
print-icon

McDonald's Top US Exec 'McFact-Checks' Social Media Buzz Around $18 Big Macs

Tyler Durden's Photo
by Tyler Durden
Thursday, May 30, 2024 - 06:25 PM

A top-level McDonald's executive was fed up with social media users complaining about out-of-control 'Mcflation,' more precisely, $18 Big Macs, and wanted to set the record straight. The exec called "viral social posts" about burger inflation "poorly sourced." This comes as the burger chain is preparing to reintroduce the $5 meal deal to retain consumers as failed Bidenomics crushes the working poor, resulting in a price war between other burger chains (read here).

"Recently, we have seen viral social posts and poorly sourced reports that McDonald's has raised prices significantly beyond inflationary rates. This is inaccurate," Joe Erlinger, president of McDonald's USA, wrote in an open letter. 

Erlinger said, "Americans across the country are making tough calls about where to spend their hard-earned money," adding, "And while we've been working hard to make sure our fans have great reasons to visit us, it's clear that we — together with our franchisees — must remain laser-focused on value and affordability." 

Erlinger is addressing these X posts...

"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," the exec said, adding, "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." 

He provides his McFacts...

The average price of a Big Mac in the US was $4.39 in 2019. 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%).

Erlinger's open letter comes as reported same-store sales missed Wall Street's expectations in its first-quarter earnings report as low-income consumers pulled back. Beginning June 25, the company will reintroduce a $5 value meal. 

We suspect Erlinger's open letter alone won't change the perspective working poor consumers have on the burger chain - as prices have risen significantly, not just with food away from home but at home. Also, the failed era of Bidenomics and out-of-control fiscal stealth stimulus risks a reacceleration of inflation.

0
Loading...