NOT. TOO. GOOD.
McDonald’s CEO promises ‘affordability’ amid backlash over $18 Big Mac combos, $6 hash browns
McDonald’s CEO admitted the burger giant’s sales have taken a hit as jacked-up menu prices have turned off core customers — and signaled the chain plans to focus on “affordability” this year.The Chicago-based fast-food behemoth — which has lately taken heat over a Big Mac combo meal priced at nearly $18 — said its global same-store sales in the latest quarter had grown just 3.4%, falling short of the 4.7% growth Wall Street had expected.
The lackluster quarter — which the company also blamed on conflict in the Middle East that has slammed franchisees overseas — sent McDonald’s shares on the New York Stock Exchange tumbling nearly 4%, to $285.97, at Monday’s close.
“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 chief executive Chris Kempczinski said on a Monday earnings call with analysts.
In particular, low income customers making less than $45,000 per year have largely stopped ordering from McDonald’s. Pummeled by inflation, they’re eating at home more frequently as grocery prices come down, Kempczinski admitted.
Last week, a McDonald’s outpost in Connecticut got slammed over its “outrageous pricing” after a customer was charged $7.29 for an Egg McMuffin — and nearly $5.69 for a side of hash browns.
Over the summer, a franchisee in nearby Darien, Conn., was called out for charging $17.59 for Big Mac combo meal. That location also sold a Quarter Pounder with Cheese and Bacon meal that came with fries and a soda for $19, according to viral posts.
Experts have also warned that fast food prices could climb even higher as minimum wage hikes are implemented across the country. California’s $20-an-hour minimum wage for fast food workers goes into effect in April.
McDonald’s and Chipotle both announced that they would be hiking the prices of menu items at Golden State locations beginning this year.
Because of COURSE they will. Why wouldn’t they—actually, how could they NOT, if they want to continue to exist and turn even a piddling profit? In the era of Bidenflation and a worthless paper dollar, the idiot protesters demanding fifteen bucks an hour are going to protest themselves right out of a job and onto the unemployment rolls before it’s all said and done, which serves them right if you ask me. May they all have joy of their foolish choice.
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If the minimum wage works, then why not $500 per hour and make everyone wealthy?
You may recall that some time ago — over fifteen years — I demanded on Daily Pundit that the minimum wage be $50/hr if not more. This was in response to either an article posted by Bill or a comment by some non-regular. I was trolling, of course, and succeeded beyond my wildest dreams. Bill caught on immediately but quite a few regulars, who should have known better, didn’t.
Heh, I do remember that now that you mention it.