For months, McDonald's has been criticized by consumers for its steep price hikes. In 2024, Golden Arches enthusiasts may finally receive some relief from growing expenditures.
McDonald's presented its fourth-quarter and full-year 2023 earnings report and then discussed it in a Feb. 5 conference call. McDonald's 2024 pricing plans were discussed throughout the session
As we enter 2024, inflation has decreased significantly from its high.Our pricing should drop along with that throughout the year, said McDonald's executive vice president and CFO Ian Borden.
Borden said McDonald's pricing rose 10% last year. He added the business will keep consumers in mind while setting rates in the future because they are "more weary" of increasing charges.
If McDonald's follows through on its pricing intentions, it should provide consumers some breathing room after seeing their favorite menu items become more expensive.
In the past year, some consumers have gone popular on social media for criticizing McDonald's price hikes.Last week, X, formerly Twitter, went crazy over a McDonald's receipt from a Fairfield, Conn. rest area.
The receipt stated that McDonald's charged $14.58 for two Egg McMuffins, or $7.29 each. The post has nearly two million views and hundreds of chain-bashing comments.
"I don't eat [at McDonald's] because the price is outrageous," X user said.Customers' resistance to spending too much at McDonald's is affecting the firm.
In the Feb. 5 results call, CEO Chris Kempczinski said lower-income consumers (those earning $45,000 or less) are eating at home more since it's cheaper. Kempczinski said lower-income McDonald's customers order less or choose cheaper things.
McDonald's intends to win them back in 2024 by emphasizing value."Low-income consumers are the battleground. I anticipate 2024 will see greater focus on affordability "Kempczinski stated.