Bidenomics finally managed to do something we have n’t seen since the stupid, unnecessary, and illegal COVID lockdowns kept people trapped in their homes for weeks or months on end: high prices have forced McDonald’s sales down.
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The fast-food bear’s same-store selling fell” for the first time in nearly four years in the second quarter as inflation-weary customers skipped meals out or chose cheaper choices”, according to the Los Angeles Times. McDonald’s Chairman, President, and CEO Chris Kempczinski told investors on Monday’s weekly conference call,” Customers also recognize us as the price leader versus our important competitors, it’s clear that our value management gap has just shrunk”.
Most interestingly, while there were fewer clients at areas that had been operational for at least a year, those who did so spent more because of price increases. Kempczinski said McDonald’s is doing a” complete consider” of its sales. Shares were up 3 % on the news.
A consider is definitely needed. A Happy Meal is now available for$ 5 for your child or grandchild, but it used to be the regular price for a Quarter Pounder with Cheese Meal a while ago. According to a report from Morning Consult last week,” U.S. consumers ‘ willingness to spend money seems to be declining, and the labor market is cooling.”
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Joe Erlinger, mind of the bank’s U. S. activities, defended its charges in May. He wrote in a statement,” The average price of a Big Mac in the U. S. was$ 4.39 in 2019. The average price is nowadays$ 5.29 despite a global pandemic and historically high increases in supply chain expenses, income, and other inflationary pressure. That’s an increase of 21 %”, which is in line with overall inflation.
But it also does n’t tell the whole story.
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The median price of a Big Mac is higher, up 21 % from the average. California’s fresh$ 20 minimum wage for fast food staff has resulted in 39 million customers paying significantly more. Eight million people in expensive New York City, and perhaps a few million in Denver, are all connected to a similar tale.
California’s incredible economic incompetence is hurting people, also, who are working fewer time.
When wages do finally catch up to prices, McDonald’s — and the whole fast-food market — might still have a difficulty on its arms.  ,
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I’ve found myself more likely to miss the McD drive-thru and spend a few extra dollars for breakfast at my corner sports table if inflation has made me eat out less frequently ( and it does ). I may get a better burger and fries, or even pie. Plus a beverage or a cocktail. Sure, it’s 50 % more ( with that beer ) than the drive-thru but it’s a better experience— and I’m only doing it once every couple of weeks instead of once or twice a week. And that was previously twice as expensive.  ,
McDonald’s will need to take the” complete rethink” of its sales seriously in order to change it back because the value proposition between fast food and normal eating has changed significantly over the past few years.
