McDonald’s President Joe Erlinger has addressed recent concerns about rising prices in an open letter to customers, emphasizing that high-priced items like $18 Big Macs are exceptions rather than the norm.

Clarifying Misconceptions About McDonald’s Pricing

In his letter, Erlinger aimed to set the record straight regarding recent viral posts and reports claiming significant price hikes at McDonald’s. He stressed that such reports are inaccurate and do not reflect the overall pricing strategy of McDonald’s. Erlinger expressed frustration over isolated incidents of exorbitant pricing, such as an $18 Big Mac meal, which he highlighted as an anomaly in the chain’s vast network of over 13,700 U.S. locations.

He acknowledged that franchisees, who own and operate over 95% of McDonald’s U.S. restaurants, have the autonomy to adjust menu prices based on various factors, including inflationary pressures and local business conditions. However, Erlinger denied claims that prices across the board have increased by 100% or at rates significantly above general inflation over the past five years.

Facts and Figures on Menu Price Increases

The letter provided specific data to counter misconceptions, citing that the average price of a Big Mac has risen 21% from $4.39 in 2019 to $5.29 presently. Other menu items, such as a 10-piece nugget meal, have seen a 28% increase, not the reported 95.5%. The average price increase across McDonald’s menu items over the past five years was stated to be 40%, contrasting with double the national inflation rate as claimed in some reports. According to the Bureau of Labor Statistics, fast food prices have risen by 4.8% since last year and 47% since 2014, whereas general inflation has increased by 24% over the same period.

McDonald’s Initiatives to Maintain Affordability

Erlinger closed the letter by promoting upcoming savings promotions and the McDonald’s app, highlighting that more than 90% of U.S. franchisees are offering meal bundles for $4 or less. He encouraged customers to view these initiatives as meaningful and beneficial.

McDonald’s, alongside other fast food chains, has faced criticism over rising prices, leading to reduced revenue from lower-income consumers and declining foot traffic in stores. In response, McDonald’s has committed to lowering prices and exploring new strategies to attract customers, including $5 meal deals and promotional offers.

Burger King and Wendy’s have also announced competitive pricing strategies to maintain market share. Burger King plans to introduce a $5 meal deal in June, while Wendy’s offers a $3 breakfast combo and various app-based promotions. Erlinger reassured McDonald’s customers that the company remains committed to affordability and value, aiming to address concerns and maintain customer trust in the face of evolving economic conditions.