Executives say the average price of McDonald’s menu items is 40% higher than in 2019 | Wilnesh News

on top McDonald’s Executives are weighing claims that the company is jacking up prices.

Joe Erlinger, President of McDonald’s USA said in an open letter On Wednesday, the average price of a McDonald’s menu item was up about 40% since 2019. house republicansWait, the fast-food company raised its prices by more than 100%.

“Americans across the country are making difficult decisions about how to spend their hard-earned money,” Erlinger said. “While we are always working hard to ensure our fans have good reasons to visit us, it is very difficult to Clearly, we – together with our franchisees – must continue to focus on value and affordability.”

Erlinger said the average price of a Big Mac meal is now $9.29, up 27% from $7.29 in 2019. 44%.

Erlinger added that the cost increase was related to similar increases in input costs such as crew wages and cargo costs.

“For a brand that serves nearly 90 percent of the U.S. population each year, we feel a responsibility to ensure we’re delivering the real facts,” Erlinger said.

According to the latest data from the Bureau of Labor Statistics, consumer prices rose 3.4% over the past year. Some consumers are exiting the entire restaurant industry in response to rising costs, a trend that has not spared the fast-food giant.

McDonald’s recently reported lower-than-expected same-store sales in its first-quarter earnings report. The company will also soon be offering $5 meals for about a month starting June 25.

The product will include a McChicken or McDonald’s double portion, four chicken nuggets, fries and a drink, CNBC previously reported.

Analysts at BTIG described the promotion as more about value perception than profit drivers.

“In our view, this new deal is more about value perception and an attempt to change media coverage of McDonald’s recent price increases and refocus on a deeper value offering. We believe the new monthly meal deal is actually Could hurt sales (curbing declines) and margins, but help restore McDonald’s position as the industry value leader,” analysts said in a note to investors.

An independent advocacy group for McDonald’s franchisees is fighting to make the discount service sustainable for the operator, saying retaining the menu beyond its initial one-month run will require greater investment from the company.

“This model simply is not profitable enough to sustain a 30% discount and therefore requires a financial contribution from McDonald’s,” the National Homeowners Association’s board of directors wrote in a letter to members seen by CNBC.

—CNBC’s Kate Rogers contributed to this report.