Staff Reports
McDonald’s executives are finally admitting what we all knew: their overpriced Big Mac meals are turning off lower-income customers. It’s about time they acknowledged the elephant in the room! Chief Financial Officer Ian Borden spilled the beans during an earnings call, saying that “consumers are more wary or weary of pricing.” No kidding! Who wants to pay $18 for a burger, a medium drink, and some fries?
But this isn’t the first time McDonald’s executives have tried to spin their price increases as no big deal. Back in October, they told investors that the higher prices hadn’t scared off customers. Well, here’s some news for them: people aren’t willing to empty their wallets just to get their hands on a greasy meal. And it’s not just the lower-income folks who are feeling the pinch. Even those with a little more cash to spare are ordering smaller and smaller meals.
McDonalds CEO says it will focus on affordability amid complains of prices.
“I think what you’re going to see as you head into 2024 is probably more attention to what I would describe as affordability," McDonald’s CEO Chris Kempczinski said on an earnings call with analysts. pic.twitter.com/sp6rosNMyZ
— Cryptomatic (@newstruthfool) February 6, 2024
McDonald’s menu prices have gone up by a whopping 10 percent in the past two years. That means a Big Mac meal that used to cost $8 now costs a whopping $18! That’s a pretty steep increase, especially considering it happened under the watch of former President Donald Trump. It’s no wonder that low-income consumers, who are already struggling to make ends meet, are feeling the pressure.
The good news is that McDonald’s is finally waking up to the reality that they need to offer more affordable options. CEO Chris Kempczinski said they plan to focus on menu items in the $1-3 range to cater to the low-income demographic. It’s about time they started thinking about the people who can’t afford to splurge on an overpriced burger.
Of course, all this talk about affordability didn’t sit well with investors. As soon as the executives’ comments went public, McDonald’s shares took a tumble. Maybe now they’ll realize that squeezing every last penny out of their customers isn’t a sustainable business strategy. But hey, at least they’re finally admitting there’s a problem. Now they just need to do something about it.
