McDonald’s increased menu prices by an average of 8% in the quarter
In the first quarter, McDonald’s increased menu prices by an average of 8% due to the rising prices in the US. Several restaurants are trying to pass the extra costs due to the inflation to the consumers.
McDonald’s Chief Executive Chris Kempczinski said, “We’ve always got to stay competitive on value. When we lose sight of that, there’s a long history of that being where we’ve kind of gotten off track.”
McDonald’s reported quarterly earnings of $2.28 a share, beating estimates of $2.17 a share.
“By staying on the side of the consumer and executing our strategy, Accelerating the Arches, we have continued to drive growth. This is why I believe there has never been a better time to be part of Brand McDonald’s," said Kempczinski.
Net income of the company was $1.1 billion for the quarter, down 28% from last year’s period. The company reported $127 million in costs in quarter due to the closure of its restaurants in Russia amid its invasion of Ukraine.
Though McDonald’s has closed its stores in Russia, it continues to pay the 62,000 people employed by the company.
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