Even a top McDonald's exec is moaning about fast food chain's price rises

Published

4 months ago

May 30, 2024

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McDonald’s top US executive denounced viral reports of runaway Big Mac prices as painting an inaccurate picture of the company, which has seen its profits surge by roughly a third since 2019 and is now preparing to roll out $5 combo meals.

“I can tell you that it frustrates and worries me, and many of our franchisees, when I hear about an $18 Big Mac meal being sold,” said McDonald’s USA President Joe Erlinger in an open letter published on the burger giant’s website on Wednesday.

“More worrying, though, is when people believe that this is the rule and not the exception, or when folks start to suggest that the prices of a Big Mac have risen 100% since 2019.”

McDonald’s profits have increased by almost a third between 2019 and 2023. McDonald’s gross profit in 2023 was slightly more than $14.56 billion. In 2019, it was nearly $11.18 billion.

McDonald’s has in recent months emphasized itself as a value brand. This month the company confirmed it would roll out a $5 combo meal for a limited time this summer.

Prices at McDonald’s are set by franchisees, which run 95% of the company’s more than 13,700 stores in the US, according to the company. The $18 Big Mac, widely reported in the media, was sold at a franchised store in Darien, Conn., a town where the median household income is more than $250,000, according to US Census Bureau figures from 2021.

Erlinger said the average price of a Big Mac in the US is $5.29, up 21% since 2019, as opposed to far larger increases suggested by “poorly sourced” reports.

An infographic accompanying the letter cited “myths” attributed to, among others, social media posts and an article in the Minneapolis Star Tribune newspaper.

Erlinger said McDonald’s built its brand on affordability and is “committed to living up to that legacy — especially at a time when our customers need it most.”

McDonald’s and other fast food restaurants with reputations for meals working people can afford have recently been targeted by people complaining about inflation and “greedflation” in the US.

In February, hamburger chain Wendy’s sparked a social media firestorm after its CEO said in a call with investors that the chain would experiment with “dynamic pricing.” Critics took the comment to suggest surge pricing often associated with airlines and the ride-hailing service Uber. Wendy’s said that interpretation was inaccurate.

Bank of America, in an investor note, said it thinks menu pricing at McDonald’s “needs to moderate.” McDonald’s pricing, which it pegged as up 20% since 2022, had increased more than competitors like Wendy’s (15%) and Burger King (16% at one franchisee).

Sports

Sources: Nats demote All-Star after all-nighter

Published

2 hours ago

September 21, 2024

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Sources: Nats demote All-Star after all-nighter

Jeff Passan, ESPNSep 21, 2024, 01:47 PM ET
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The Washington Nationals demoted All-Star shortstop CJ Abrams to the minor leagues after he stayed out all night at a Chicago-area casino, leaving only hours before a Friday day game against the Chicago Cubs, sources told ESPN’s Jesse Rogers.

The 23-year-old Abrams led off for the Nationals and went 0 for 3 with a walk and strikeout in Friday’s game, which started at 1 p.m. CT. He was informed of the demotion Friday night, sources said. He will be sent to West Palm Beach, home of the Nationals’ minor league complex.

Because Abrams has been with Washington for the entirety of the season, the demotion will not affect his service time. Players earn a full year of service with 172 days on the major league roster, and Abrams already has exceeded that threshold.

Abrams could, however, file a grievance through the Major League Baseball Players Association to fight for lost pay if he believes the demotion unjust. He would lose around $30,000 of his $752,000 salary for missing the season’s final week. Abrams will be arbitration-eligible this winter, entering the system for the first of four times as a Super 2.

Acquired as one of the centerpieces of the Juan Soto trade two years ago, Abrams parlayed a breakout first-half into an All-Star selection, hitting .268/.343/.489 with 15 home runs and 15 stolen bases over the Nationals’ first 89 games. He struggled significantly in the second half, slashing .203/.260/.326, and Abrams’ defense has been a weakness throughout the season.

Still, the Nationals did not intend to send him to the minor leagues until they learned of his time spent at the casino, which was first reported Friday by CHGO.

“I just want it to be known it wasn’t performance-based,” Nationals manager Dave Martinez told reporters Saturday. “It’s an internal issue. I’m not going to give specifics.”

World

At least 44 people killed in Israel strikes on Lebanon and Gaza in last 24 hours

Published

2 hours ago

September 21, 2024

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At least 44 people killed in Israel strikes on Lebanon and Gaza in last 24 hours

At least 44 people have been killed in Israeli strikes on Lebanon and Gaza in the last 24 hours.

A strike on the Lebanese capital Beirut killed at least 31 people including three children and seven women, the country’s health minister Firas Abiad said.

Fifteen of the 68 wounded in the attack remain in hospital.

Ali Harake, the head of the rescue team searching through the rubble, told Sky News his team is still looking for between 17 and 18 missing people – though he fears none have survived.

Follow the latest updates on the Middle East

It is understood two apartment blocks in a densely populated southern neighbourhood collapsed in the strike – the deadliest attack on Beirut in decades.

Top Hezbollah commanders are believed to have been meeting in the basement of one of the buildings.

Hezbollah has confirmed two of its senior commanders, Ibrahim Aqil and Ahmed Wahbi, died in the strike while an Israeli military spokesperson said that at least 16 Hezbollah militants were killed.

Wahbi oversaw the military operations of the Radwan special forces – a commando unit that seeks to infiltrate and carry out attacks in Israel – until early 2024. Aqil was also a top commander for the Iran-backed group.

The Palestinian militant group Hamas has described the killing of Aqil as a “crime” and a “folly”, adding Israel will “pay the price”.

Meanwhile, at least 13 people have been killed in Israeli strikes on Gaza City, according to a local report.

The strikes are believed to have hit several schools sheltering displaced people in the southern part of the city.

The strikes come after Hezbollah launched one of its most intense bombardments of northern Israel in nearly a year of fighting, largely targeting Israeli military sites.

Israel’s Iron Dome missile defence system intercepted most of the Katyusha rockets.

Hezbollah said its latest wave of rocket attacks was a response to past Israeli strikes on southern Lebanon.

It came days after mass explosions of Hezbollah pagers and walkie-talkies killed at least 37 people, including two children. Some 2,900 others were wounded in the assault which has been widely attributed to Israel.

World

Fire rips through arms depot deep inside Russia after huge Ukrainian drone attack – as Zelenskyy prepares to meet Trump

Published

2 hours ago

September 21, 2024

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Fire rips through arms depot deep inside Russia after huge Ukrainian drone attack - as Zelenskyy prepares to meet Trump

A fire has ripped through a Russian missile depot in the Tver region deep inside the country after it was targeted in a Ukrainian drone attack, the defence ministry in Moscow has said.

Footage shows a second Ukrainian drone attack on the southwestern Russian region of Krasnodar also triggered a fire and caused a series of explosions.

Russia’s defence ministry has claimed its forces shot down 101 Ukrainian drones over Russian territory and occupied Crimea during the overnight attacks.

The drone strikes were carried out as Ukrainian leader Volodymyr Zelenskky said he is hoping to meet Donald Trump next week when he travels to the US – where he will present US President Joe Biden with a “victory plan” in relation to the war.

Meanwhile, Ukraine’s foreign minister said Russia appears to be planning strikes on Ukrainian nuclear facilities before the winter.

Posts on local Telegram channels said a Ukrainian drone attack struck an arms depot near the town of Toropets, in Russia’s Tver region – which is about 380 kilometres (240 miles) northwest of Moscow and about 500 kilometres (300 miles) from the Ukrainian border on Saturday.

Russian authorities closed a 100-kilometre (62-mile) stretch of a highway and evacuated passengers from a nearby rail station.

The depot appeared to be just miles from a Russian weapons arsenal storing missiles, bombs and ammunition in Tver that was struck by Ukrainian drones early Wednesday, injuring 13 people and also causing a huge fire.

Meanwhile, at least 1,200 people were evacuated from Russia’s southwestern Krasnodar region after an ammunition depot and missile arsenal were struck in the second drone attack overnight, the local governor has said.

Most of those evacuated were staying with friends and relatives, Veniamin Kondratyev, the governor of Krasnodar region, said on the Telegram messaging app.

There were no immediate reports of casualties in either Tver or Krasnodar.

Ukraine warning of attacks on nuclear sites

It comes as Kyiv is urging the International Atomic Energy Agency (IAEA) and Ukraine’s allies to establish permanent monitoring missions at the country’s nuclear plants as it warns they could be targeted in Russian attacks.

“In particular, it concerns open distribution devices at (nuclear power plants and) transmission substations, critical for the safe operation of nuclear energy,” foreign minister Andriy Sybiha wrote on X.

Zelenskyy prepares for US trip

Meanwhile, the Ukrainian leader has said he plans to meet Republican presidential candidate Mr Trump on either Thursday or Friday next week.

During the trip, Mr Zelenskyy will present Mr Biden with a so-called victory plan as he hopes to bring about an end to the conflict.

The Ukrainian president has said the plan will include long-range striking capabilities and other weapons long sought by Kyiv, and will serve as the basis for any future negotiation with Russia.

He is also expected to push Washington to lift restrictions on long-range missile strikes inside Russia.

Mr Zelenskyy will attend sessions of the UN Security Council and General Assembly and also plans to meet vice president Kamala Harris, the Democratic candidate in this year’s US election, in separate meetings on 26 September.

The developments come as three sources have told Reuters that Iran did not include mobile launchers with the close-range ballistic missiles that Washington has accused Tehran of delivering to Russia for use against Ukraine.

The sources – a European diplomat, a European intelligence official and a US official – said it was not clear why Iran did not supply launchers with the Fath-360 missiles, raising questions about when and if the weapons will be operational.