McDonald's (MCD) plans to raise their menu prices come next year. McDonald's announced the planned increase in menu prices has to be done to offset the rising cost of commodities come 2011! It's not certain what food items the fast food giant will keep at its current price.
According to Money Central on MSN, McDonald's CFO Peter Benson predicts that commodity prices will jump 2% to 3% in 2011. Because of that jump in prices, McDonald's will have to raise their prices by 2 to 3 percent as well. Apparently, this will be the first time since 2009 that the company is planning an increase in their prices.
According to Chicago Breaking news, the fast food giant has enjoyed a very profitable summer with their new line of McCafe items. McD's probably needs to offset cost for that line of drinks as well. The company also reported a third-quarter profit of $1.39 billion, or $1.29 a share, up from $1.26 billion, or $1.15 a share, a year earlier.
Not only that but revenue increased 4 percent to $6.3 billion as sales at stores open at least a year rose 6 percent. Needless to say, McDonald's is very successful indeed. However, what about the rest of us? Do we really need their prices to go up?
2010 Sophie s. Benvenuti - Gather.com
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Comments: 17
I know a lot of people feel America is fat because of McDonalds and there was some outcry over the toys in the Happy Meals ...luring the kids.. I think McD's marketing department decided to counter that and I saw ads with kids saying how buying a happy meal helps give kids hope...that McD's will do donations..
I think the only way that people will realize what they are doing when they eat a big Mac is for fast food to have to put the amount of calories right on the rapper.
Big Mac with cheese is 704 calories. Medium fries 380 Medium Coke 210 for a grand total of
1,294 calories...
When I was in the hospital years ago I was given 1,200 calories for the whole day....
I bet more people would make better choices if they had to mark their food with the calorie count.
So raise the prices, maybe a few people will eat healthier.
To be fair to McD's a Burger King Whopper with cheese is 760 calories.
However, this coming January will the be second time in a row some. It was many years ago the last time this happened.
Why? Economic data shows a DEFLATION of prices.
Did this McDonalds "CFO" attend the same university as those Wall Street banking "Wizards"?