Current Events > McDonald's customers are balking at higher Big Mac prices!

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https://www.aol.com/finance/mcdonald-customers-starting-balk-higher-134418500.html

McDonalds customers are starting to balk at higher Big Mac prices

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 Big Macs and fries.

"We are seeing in some places resistance to pricing, more resistance than we saw at the outset," McDonald's CEO Chris Kempczinski warned on the company's Tuesday earnings call.

McDonald's said it's seeing "pressure" on its key units per transaction measure. That means the typical cost-conscious McDonald's customer is balking at higher menu prices.

As a result, they may be buying a hamburger but not getting a side of fries. Or those with a little more cash in their pockets could be buying more premium McDonald's dinner items but leaving out a dessert.

Earlier in the call Kempczinski reiterated his expectation for a "mild recession" in the US this year.

"I think all of those things are reflective of again, a more challenging macro environment," Kempczinski said. "But again, McDonald's, we perform well in good times and in bad, and so that's what gives us the optimism as we go through the rest of this year."

How much McDonald's customers are buying per visit will be important for investors to monitor as the stock trades near a record high after a series of solid quarters.

That momentum stretched into the first quarter.

McDonald's first quarter same-store sales rose 12.6% both in the US and internationally. Wall Street analysts modeled for same-store sales rising 7.5% in the US and 8.2% globally.

"Investors are getting so used to McDonald's increasing same-store sales by double-digits that a 12.6% same-store sales growth does not even move the stock, even when lapping 11.8% in 1Q22," Bernstein analyst Danilo Gargiulo wrote in a client note.

But any disappointment in sales and, by extension, profits this year may lead to a sharp pullback in a stock Wall Street has fallen in love with again. About 71% of analysts that cover McDonald's rate the stock a Buy, according to Bloomberg data...

https://youtu.be/QynhIqkrHcU

shut the fuck up SMAL

Never order the Big Mac, so this situation has no effect on me.

https://youtu.be/VgethQHrhDk

Yea I went for some McDs for lunch today and probably wont be back for awhile. Another price hike across the menu and they finally budged on the $1 drink (now $1.30)

Even with the app for a BOGO, it was $6 for 2 double cheeseburgers and a drink.

GaryGensler posted...

https://youtu.be/VgethQHrhDk

6 minutes of chatting before he even takes a bite, cannot stand this guy

Ive resorted to downloading the app to get decent prices at a lot of places now. Its stupid tbh but a man got to eat and Im fine paying 12 bucks for a medium combo and a side of Nuggets.

Rise_Makaveli posted...

Ive resorted to downloading the app to get decent prices at a lot of places now. Its stupid tbh but a man got to eat and Im fine paying 12 bucks for a medium combo and a side of Nuggets.

Yeah, I get that. But you know all they're doing is tracking all their customers to figure out how to raise prices more, in what areas, etc. lol.

Doom_Art posted...

shut the fuck up SMAL

Thank God he doesn't have to pay rent to live in your head with all these price increases happening.

In my entire life I've never once eaten a Big Mac ever. I saw they have the sauce as a dip starting today. Never had that either.

Can one of you kind bros tell me what SMAL means here?

Per Google it has a lot of meanings

Self Managed Absorbed Learning?
Shoot Me A Link?
Stabilized Mirror Airborne Laser?

RISEofCHRISTIAN posted...

Can one of you kind bros tell me what SMAL means here?

Per Google it has a lot of meanings

Self Managed Absorbed Learning?
Shoot Me A Link?
Stabilized Mirror Airborne Laser?

Shake My Ass Loudly

hyperskate65 posted...

In my entire life I've never once eaten a Big Mac ever. I saw they have the sauce as a dip starting today. Never had that either.

Like anywhere else.

It depends on the establishment.

Got some Mac's that were great at some places.

Been to some places and theirs were absolute crap.

Cold, dry and stale.

RISEofCHRISTIAN posted...

Can one of you kind bros tell me what SMAL means here?

Per Google it has a lot of meanings

Self Managed Absorbed Learning?
Shoot Me A Link?
Stabilized Mirror Airborne Laser?

Don't you do this in every single one of his topics?

Heineken14 posted...

Don't you do this in every single one of his topics?

what?

if i knew what SMAL means, would i be asking what it is?

I haven't gone in a while to McDonald's but I think the big mac combo in Alaska costs like 10 bucks. Alaskan fast food is always at least a full dollar or more than elsewhere

Even if you buy just the burger, its like 5 I think

McDonald's prices are stupid high. $8 for 10 piece nuggets. Like Wtf

Probably making the burgers smaller again too.

Burger King is better. Here is a video explaining why...

https://www.youtube.com/watch?v=72LzxNIqz48

PrettyBoyFloyd posted...

Like anywhere else.

It depends on the establishment.

Got some Mac's that were great at some places.

Been to some places and theirs were absolute crap.

Cold, dry and stale.

i don't eat there often but if they ever get rid of the mcchicken I will fucking flip

The_Wheelman1 posted...

$8 for 10 piece nuggets. Like Wtf

way too much.

hyperskate65 posted...

if they ever get rid of the mcchicken I will fucking flip

i'm doubtful they'll ever remove it. the spicy version maybe because of the poor customers cant handle the spicyness.

I told you guys McDonald's was overpriced. They just keep getting more expensive. It isn't 2010 anymore. They aren't a good value.

McDonalds about to get bitchslapped by the invisible hand.

Good. Let it burn

prices everywhere went up, but mcdonalds fuckin skyrocketed in comparison to other drive-thrus.

GaryGensler posted...

Yeah, I get that. But you know all they're doing is tracking all their customers to figure out how to raise prices more, in what areas, etc. lol.

Occasionally I get 8 bucks off an order of 16 or more, they can have my data for those kinds of deals tbh.

Shame on anyone who pays these prices. Let the store close down. We dont need that garbage. I havent eaten it in years and probably never will if theyre price gouging this much.

Without beef subsides from the US government a big mac would cost about 13 bucks.

https://www.aier.org/article/the-true-cost-of-a-hamburger/

Big Mac prices are always bullshit when they use the same patty as the mcdouble. Only worth getting on a 2 for 5 deal.

damn now i want some mcd

reverse psychology up in this shit

SgtBash posted...

6 minutes of chatting before he even takes a bite, cannot stand this guy

Blasphemy, Reviewbrah is a national treasure.

WrkHrdPlayHrdr posted...

Without beef subsides from the US government a big mac would cost about 13 bucks.

https://www.aier.org/article/the-true-cost-of-a-hamburger/

Its time to stop all of that and let these fast food giants fend for themselves. Theyre not essential in any sense of the word and that money could be used to fix things for the people.

Would you rather have a fair-paying job and an affordable house, or would you rather a country that has cheap hamburgers? To be honest, most people eat WAY too much and we really dont need these fast food companies. We got by just fine before they were here and we can get by fine now.

Not if you use the App for deals. For instance, I'm gonna buy a Big Mac for full price and then get another for free or another dollar.

Rise_Makaveli posted...

Ive resorted to downloading the app to get decent prices at a lot of places now. Its stupid tbh but a man got to eat and Im fine paying 12 bucks for a medium combo and a side of Nuggets.

You could always just learn to cook

OudeGeuze posted...

You could always just learn to cook

Cooking at home is best. You make the food the way you want, and you dont have to deal with tipping or some cashier getting your order wrong.

https://youtu.be/np3Dt663uJ0

MCdonalds CEOs mad they cant buy 2 yachts every year.

Payzmaykr posted...

Would you rather have a fair-paying job and an affordable house, or would you rather a country that has cheap hamburgers?

You're asking the tough questions now. Well I already have a home at least.

The worse thing for me is being able to redeem one thing on the app, I got all these points but I can never use them all because I can only redeem one thing and also can't use a coupon at the same time too like wtf

McDonald's is so gross. Nothing on their menu is worth more than two bucks.

The only time I get a Big Mac now is when I have a coupon or enough reward points to get it for free. Otherwise I'm not paying $6.50 for one Big Mac when I can get two McDoubles or Jr. Chickens for less.

And don't get me started on how absurd the fry prices are now. $4 for a single medium fry? Fuck that.

Also McNuggets. Fuck McNuggets. It's absolutely criminal how much McDonalds Canada charges for McNuggets. $6.79 right now for a 6-pack, more than a buck a nugget. Last time I was at a US McDonalds they were like $2.49.

WrkHrdPlayHrdr posted...

Without beef subsides from the US government a big mac would cost about 13 bucks.

https://www.aier.org/article/the-true-cost-of-a-hamburger/

facts. all meat plus milk/dairy would be quite expensive without government intervention.

Balking!