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McDonald's to Raise Menu Prices

10/30/2021

Faced with escalation in costs for labor, ingredients, packaging, consumables and transport, McDonald's is raising specific menu prices to maintain gross margin.  During the past year, wages have increased at stores owned by McDonald's and those operated by franchisees.  Apart from recruitment bonuses and fringe benefits, wages have increased by over 10 percent year to date in company-owned U.S. locations. 

 

In commenting on the projected price increases, Chris Kempczinski, CEO noted in the Q3 earnings call that "I was hoping and expecting that we were going to see the situation improve maybe a little bit more quickly than what has materialized".

 

It is anticipated that other QSR's faced with similar escalation in inputs and labor will raise prices, contributing to inflation in the cost of away-from home dining. This was calculated by the Bureau of Labor Statistics to be 4.7 percent for the 12-months through September 2021.