Rising Prices at Mc Donalds

McDonald's Menu: Expensive and Unsustainable

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Rising Prices at Mc Donalds

McDonald's Menu: Expensive and Unsustainable

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Rising Prices at Mc Donalds

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Our Review​

Now $18 for a Big Mac Menu at McDonald's: Expensive and Unsustainable

McDonald's Quarterly Figures: What's Going On?

Investors in McDonald’s, listed on the New York Stock Exchange, haven't had a good year. The stock has lost over 15 percent of its value since the beginning of the year. On Monday, the fast-food chain will present its second-quarter figures, following disappointing results in the previous two quarters. What's happening with the iconic hamburger chain with the big M?

Rising Prices

Like many companies, McDonald’s has recently raised its prices significantly. Last July, a post went viral on X about the prices at a Connecticut branch, where Big Mac menus were selling for nearly $18 (prices may vary slightly by location). McDonald’s responded to increased purchase prices but passed the cost onto consumers too heavily.

Negative Impact on Low Incomes

This had a negative effect: starting from the third quarter of last year, low-income consumers in the US began reducing their visits to McDonald's.

The company generates about 90 percent of its revenue in the US.

Boycott due to support for Israel
From the fourth quarter, there was also international backlash: in Islamic countries, consumers began boycotting the company due to US support for Israel in the Gaza conflict.

Unhealthy and Calorie-Rich $5 Menu for the Poor

"Consumers are being careful with every dollar they spend," said CEO Chris Kempczinski during the previous quarterly results presentation in April.

McDonald’s seems to have regained some of the low-income customers with an unhealthy and calorie-rich $5 menu. This menu, consisting of a McDouble hamburger, four chicken nuggets, a small fry, and a small soda without ice (totaling 1000 calories), was supposed to last four weeks but has recently been extended indefinitely.

McDonald's is Not Sustainable or Socially Responsible

McDonald’s does not appear to be focusing on sustainability or social responsibility. The emphasis on cheaper, high-calorie options raises questions about the chain's long-term strategy.

Source: NRC

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