Now $18 for a Big Mac Menu at McDonald's: Expensive and Unsustainable
Investors in McDonald’s, listed on the New York Stock Exchange, haven't had a good year. The stock has lost over 15 percent of its value since the beginning of the year. On Monday, the fast-food chain will present its second-quarter figures, following disappointing results in the previous two quarters. What's happening with the iconic hamburger chain with the big M?
Like many companies, McDonald’s has recently raised its prices significantly. Last July, a post went viral on X about the prices at a Connecticut branch, where Big Mac menus were selling for nearly $18 (prices may vary slightly by location). McDonald’s responded to increased purchase prices but passed the cost onto consumers too heavily.
This had a negative effect: starting from the third quarter of last year, low-income consumers in the US began reducing their visits to McDonald's.
The company generates about 90 percent of its revenue in the US.
Boycott due to support for Israel From the fourth quarter, there was also international backlash: in Islamic countries, consumers began boycotting the company due to US support for Israel in the Gaza conflict.
"Consumers are being careful with every dollar they spend," said CEO Chris Kempczinski during the previous quarterly results presentation in April.
McDonald’s seems to have regained some of the low-income customers with an unhealthy and calorie-rich $5 menu. This menu, consisting of a McDouble hamburger, four chicken nuggets, a small fry, and a small soda without ice (totaling 1000 calories), was supposed to last four weeks but has recently been extended indefinitely.
McDonald’s does not appear to be focusing on sustainability or social responsibility. The emphasis on cheaper, high-calorie options raises questions about the chain's long-term strategy.
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