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McDonald’s missed its first quarterly sales mark in nearly four years. And I’m not surprised. Why? Because of McDonald’s high prices.
In this case, consumers (including me) are sick of paying $5.69 for a shrunken Big Mac, and $5.04 for a Large Fry. But there’s more to the story.
McDonald’s Restaurants In Muslim Countries Are Being Boycotted
The burger franchise drew criticism after its Israel-based franchise said it had given away thousands of free meals to members of the Israeli military. That sparked calls to boycott the restaurant by those angered by Israel’s military response in Gaza.
Specifically, it prompted franchisees in a few Muslim-majority countries to put out statements that distanced themselves from McDonald’s. Those countries included Kuwait, Pakistan, France, and Singapore. And that’s part of the reason earnings were off. The other part? I said as much in the beginning of this article.
McDonald’s High Prices!
I’ve been complaining about the ridiculously high prices at McDonald’s restaurants for the past year.
With that in mind, I have a few questions.
Are the company’s prices high because of the pandemic?
Are potatoes still going through some things? Or are prices down?
Hint: they are down.
So what gives?
Is it price-gouging?
I hope not.
The Company’s Strategy Backfired: McDonald’s Earnings Are Down
Note: According to Fortune, McDonald’s had increased its menu prices, hoping to generate more sales.
However, that strategy backfired as it ended up turning off customers. especially lower-income ones. In turn, McDonald’s corporate earnings suffered.
Wait. You mean consumers didn’t want to pay more?
I guess not, because McDonald’s CEO, Chris Kempczinski, hinted at lower prices during the earnings call:
“I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability.”
I hope the company does, in fact, lower their menu prices. Look at #4.
Because this has been going on way too long.
P.S. It’s not just McDonald’s. Food prices at every restaurant and grocery store have been way too high for way too long.
According to CounterPunch.org, “Inflation in the grocery industry has been higher than in other industries, rising 25 percent over the past four years compared to 19 percent overall, and many have pointed to simple greed as the reason” Read more.