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McDonald’s Responds to Claims of Excessive Price Increases

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McDonald’s President Joe Erlinger addressed recent claims of significant price hikes at the fast-food chain in an open letter dated Tuesday. Amid viral social media posts and media reports alleging inflated prices, Erlinger sought to clarify the situation and ensure accurate information reaches the public.

Clarification of Price Increases:

Erlinger emphasized that claims of exorbitant price hikes, such as an $18 Big Mac meal, are inaccurate and do not reflect the overall pricing strategy of McDonald’s. While inflationary pressures have impacted the economy, franchisees set menu prices based on their operational costs, striving to minimize the impact on consumers.

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Broader Economic Concerns:

Beyond inflation, McDonald’s faces challenges in its licensed markets business, particularly in the Middle East. Sales growth has been modest, influenced by geopolitical tensions such as the conflict between Israel and Hamas. CEO Chris Kempczinski highlighted the significant impact of the conflict on McDonald’s operations in Muslim-majority countries like Indonesia and Malaysia.

McDonald’s response aims to address misconceptions surrounding recent price increases, emphasizing the franchisees’ efforts to balance operational costs with consumer affordability. As the fast-food giant navigates economic challenges, including inflation and geopolitical tensions, transparency and communication remain crucial in maintaining consumer trust and confidence.

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