• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick A Big Mac combo for $18? Fast foodies are getting fed up with price hikes
Editor's Pick

A Big Mac combo for $18? Fast foodies are getting fed up with price hikes

by February 8, 2024
by February 8, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Look no further than the fast-food drive-thru for evidence of inflation fatigue.

Food companies have been passing along higher labor and ingredient costs to consumers long after inflation peaked at 9.1% in June 2022. Diners are getting fed up, eating less fast food and griping on social media that their go-to cheap meals aren’t so cheap anymore.

Sales show it. McDonald’s reported underwhelming results in the fourth quarter, and Yum Brands showed weaker-than-expected growth in its top brands, which include KFC, Taco Bell and Pizza Hut.

Fast-food executives are taking note. McDonald’s CEO Chris Kempczinski told analysts Monday that consumers are becoming more discriminating with their dollars, and he promised the company would focus more on affordability this year.

McDonald’s has faced criticism for one franchise location’s $18 Big Mac meal.Jakub Porzycki / NurPhoto via Getty Images file

Kempczinski noted that consumers earning $45,000 or less annually were favoring comparatively cheaper groceries over Mickey D’s, opting to cook their own meals more often.

“Eating at home has become more affordable,” he said. “The battleground is certainly with that low-income consumer.”

Some common grocery items have been falling in price. In the Bureau of Labor Statistics’ Consumer Price Index, the food at home category rose only 1.3% between December 2022 and December 2023, but food away from home rose 5.2%.

Long known for its Dollar Menu, McDonald’s was recently pilloried online for a Connecticut restaurant’s $18 Big Mac combo meals and $7 Egg McMuffin.

McDonald’s told NBC News that pricing is up to franchisees and can vary by location but that the company strives to strike a balance for value.

In recent years, many fast-food companies have expanded offerings and tweaked their restaurants to try to attract as many customers as possible across income levels. McDonald’s recently upgraded its famous burgers and opened a new concept called CosMc’s, all while leaning into nostalgia.

But inflation-scarred diners may care more about price, said Laura Murphy, managing director of Bolt PR who specializes in food and beverage marketing.

“People are really telling fast food QSR [quick-service restaurant] industry leaders, ‘This is what we’re looking for, this is what we want: We want efficiency. We want affordability.’”

McDonald’s sales missed expectations in the fourth quarter of 2023.Justin Sullivan / Getty Images

Meanwhile, Taco Bell is leaning in on its value menu, promoting 10 items for $3 or less. The company told NBC News it “remains dedicated to offering our fans delicious food at affordable prices.”

This isn’t the first time in recent years that consumers have balked at menu price hikes, or taken to social media to gripe about them.

Yum CEO David Gibbs told Yahoo Finance last year that the company was planning more modest price increases than the ones it implemented in 2022. Amid the latest quarter’s disappointing results, Yum announced plans to juice sales at KFC by launching a smashed potato bowl and the chicken chain’s first loyalty program.

Some major food and beverage brands operating in the Middle East — including McDonald’s, Starbucks and Yum — have said conflict in the region and related boycotts have also dented business. Burger King’s parent company warned in November that the turmoil there threatened to pile on top of other global pressures, from the war in Ukraine to Covid-19, that have already driven up costs over the last few years.

That could potentially “have an adverse impact on our business and results of operations if we and our franchisees are not able to adjust prices sufficiently … without negatively impacting consumer demand,” the company told investors.

Bucking the trend, Chipotle’s sales rose 8.4% in the fourth quarter and foot traffic improved, too, after a 3% menu price hike back in October. The company credited the return of carne asada with helping drive the growth.

With prices for almost everything higher today than three years ago, even though inflation has slowed sharply, Murphy said what matters most in today’s fast-food industry are cost and convenience.

“Let’s go back to really making sure that we’re providing simple food in an affordable way that’s efficient, quick, and it gives people really the basics of what they’re looking for,” she said.

This post appeared first on NBC NEWS
You Might Also Like
  • Mortgage rates plunge to the lowest level in over a year after weak employment report
  • U.S. payrolls increased by 150,000 in October, less than expected
  • EBay to eliminate about 1,000 jobs, or 9% of full-time workforce
  • Southwest Airlines flight pause lifted after technology issues halted departures
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Jeffries hints at bipartisan talks skirting House GOP leadership on Ukraine, Israel aid
next post
New sports bundle could give cord-cutting fans their biggest single source of content yet

You may also like

Hims & Hers Health says it will offer compounded GLP-1...

May 22, 2024

Warner Bros. Discovery’s NBA rights offer could put it in...

May 24, 2024

Hasbro says it’s taking steps to offset China tariff effects

February 21, 2025

Nvidia’s Jensen Huang is ‘dead wrong’ about quantum computers, D-Wave...

January 9, 2025

Reddit pops 48% in NYSE debut after selling shares at...

March 25, 2024

Meme stock mania is back: Why everyone is talking about...

May 16, 2024

All the data so far is showing inflation isn’t going...

April 27, 2024

The fight for the future of the Murdoch media empire...

September 10, 2024

How on-time rent payments can help ‘credit invisible’ consumers be...

July 18, 2024

U.S. jury finds realtors liable for inflating commissions, awards $1.78...

November 3, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Willow Bay, Bob Iger to take...

    July 17, 2024

    Fed officials see ‘upside risks’ to...

    August 18, 2023

    The Eclipse Foundation Announces The Release...

    December 8, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here