“Corporate profits must not come at the expense of people’s ability to put food on the table.”
Washington, D.C. – U.S. Senator Ron Wyden, D-Ore., said today he has joined with Senators Elizabeth Warren, D-Mass., and Bob Casey, D-Pa. to press McDonald’s for more information on the company’s pricing decisions as fast food prices continue to increase, outpacing inflation and squeezing customers.
“While McDonald’s is not the only fast food restaurant that has increased prices significantly in recent years, its dominant market position as the largest fast food chain in the United States has an outsize impact on American consumers. While working families are trying to make ends meet, McDonald’s and its corporate counterparts have continued to grow their profits,” the senators wrote to McDonald’s President and Chief Executive Officer Chris Kempczinski .
Earlier this year, McDonald’s USA President Joe Erlinger tried to blame the company’s menu price increases on inflationary pressures and input costs, but the data tells another story. Since the COVID-19 pandemic, fast food prices have consistently outpaced inflation, and since 2020, overall inflation has increased by 20 percent, while McDonald’s has increased its menu prices for several items substantially more. McDonald’s net annual income rose by over 79 percent – nearly $8.5 billion, from 2020 to 2023.
While McDonald’s raised prices, the company also spent nearly $4 billion on stock buybacks in 2022 and $3 billion in 2023. The company also benefits from a tax loophole that favors buybacks. This prioritizes Wall Street shareholders over investments in McDonald’s own business and workers.
“Corporate profits must not come at the expense of people’s ability to put food on the table,” concluded the senators. “As we seek to investigate and understand the increased consumer costs in the economy, we hope McDonald’s will help us to understand why its prices have risen so high.”
The text of the letter is here.