The CEO of McDonald’s admitted Monday that sales of fast food The giant plunged in a context of increasing menu prices which did not go unnoticed by customers.
The Chicago-based chain has faced heavy criticism over its Big Mac combo, selling for nearly $18, among other menu increases, and has promised to focus on affordability, the New York Post reported.
“I think what you’re going to see as we approach 2024 is probably a greater focus on what I would describe as affordability,” McDonald’s CEO Chris Kempczinski said during a conference call with analysts.
Some global same-store sales rose 3.4%, below the 4.7% expected by Wall Street. Additionally, some low-income customers have stopped patronizing the chain as inflation has driven up prices, Kempczinski said.
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“Eating at home has become more affordable,” Kempczinski said. “The battleground is certainly between lower-income consumers.”
Prices at McDonald’s are still expected to rise at a slower pace, restaurant analyst Mark Kalinowski told the Post.
Last week, a McDonald’s restaurant in Connecticut came under fire after a customer was charged $7.29 for an Egg McMuffin and nearly $5.69 for a side of hash browns. The Darien, Conn., franchise was called out for charging $17.59 for a Big Mac combo.
Fast food prices in general could climb even higher as minimum wage hikes take effect across the country. In California, many fast food workers will earn $20 an hour starting April 1.
McDonald’s and Chipotle signaled prices would increase duty increase in response to high labor costs.
Original article source: McDonald’s CEO says fast-food chain will focus on affordability amid outrage over menu hikes
