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McDonald's has been raising menu prices and customers are eating it up. Sales at US restaurants open at least 13 months jumped 3.7% in the second quarter, the company said Tuesday.
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In this environment, customers are turning to McDonald's — even as the burger chain raises its own prices. In the third quarter, McDonald's US prices were up about 10% year-over-year on.
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April 26, 2023 · 2 min read. McDonald's ( MCD) had a juicy first quarter, but fat sales and profits aren't guaranteed this year as consumers begin to push back on higher prices for things like.
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That's putting pressure on lower-income consumers, a vital base for the chain. "We actually saw that cohort" — customers making $45,000 or less — "decrease in the most recent quarter.
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At that time, restaurant prices were up 8.4% and grocery prices were up 10.2% year over year. "Some of those consumers are just choosing to eat at home more often," Borden said. To win back.
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McDonald's had said at its earnings call in October that its price increases largely hadn't put customers off. Diners have taken to social media to complain about the price of fast food, which.
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Lately, prices of groceries have continued to remain high. Grocery costs rose 1.3% overall last year and dining out rose by 5.2%, according to the latest Consumer Price Index report per CNN.
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McDonald's President and CEO Chris Kempczinski said there were fewer visits and lower spending by customers earning $45,000 per year or less. Kempczinski said that as grocery inflation has.
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McDonald's has been under fire for months from consumers who are outraged over significant price increases at the once-affordable fast-food chain. But in 2024, fans of the Golden Arches may.
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Item 1 of 3 The McDonald's company logo stands on a sign outside a restaurant in Bretigny-sur-Orge, near Paris, France, July 30, 2020. REUTERS/Benoit Tessier/File Photo
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Getty/Cassidy Sparrow. McDonald's said it's gaining middle- and higher-income customers, who are trading down to its menu. But the chain said it's also losing visits from lower-income diners.
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The sector has seen this movie before. The last time the fast-food industry lost customers to grocery stores was nearly 10 years ago; prices for at-home food started to increase at a much slower.
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That said, McDonald's has a playbook to win back some value-seeking consumers this year, including bundling at a $4-and-below price point and promoting those bundling options more. "90% of our.
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McDonald's says higher prices helped lift U.S. sales. The fast-food chain is the latest in a number of companies that have managed to increase prices without seeing a drop in demand.
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McDonald's reports earnings on Monday Oct. 30, 2023. (AP Photo/Gene J. Puskar, File) McDonald's said it's pumping the brakes on higher prices and focusing more on value meals after seeing a drop.
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While grocery prices have risen by 1% in 2023, dining-out prices have seen a surge of 5.2%, per the Latest Consumer Price Index report. "We saw that cohort (customers making $45,000 or less.
