McDonald's menu prices have increased by 40% since 2019, introducing a $5 value meal

From CNBC: 2024-05-29 16:39:28

McDonald’s executive addresses claims of price increases, stating average menu item up 40% since 2019. Big Mac meal now $9.29, 10-piece McNuggets up 28%, medium fries up 44%. Cost increases tied to higher input costs. Consumer prices up 3.4% over past year. McDonald’s to offer $5 value meal starting June 25. Analysts view promo as value perception play.
McDonald’s same-store sales below expectations, consumer pullback in restaurant industry. $5 value meal offering includes McChicken or McDouble, four-piece nuggets, fries, drink. Analysts say promo could hurt sales but reestablish McDonald’s as value leader. Franchisees advocate for sustainability of discounted offering, request greater investment from company beyond initial month.
National Owners Association of McDonald’s franchisees seeks financial contribution from company for sustainable discounted offering. Group says 30% discount on value meal not profitable without help from McDonald’s. Promotion aimed at changing media narrative around recent price hikes, maintaining value perception. Experts view promotion as more about consumer perception than profit.



Read more at CNBC: McDonald’s menu items cost 40% more than in 2019 on average, exec says