A Democratic senators group criticized McDonald’s for its price hikes and its “dominant market position” as the biggest fast-food chain nationwide. In a letter to McDonald’s leadership, Sens. Elizabeth Warren (Mass.), Bob Casey (Pa.), and Ron Wyden (Ore.) demanded explanations from President and CEO Chris Kempczinski regarding what they believe are inflated prices, taking into account inflation. The senators mentioned that McDonald’s, being the largest fast-food chain in the U.S., has a significant impact on consumers, especially working families struggling with rising costs while the company continues to see profit growth. The letter, initially reported by NBC News, highlighted how McDonald’s USA President Joe Erlinger attributed menu price increases to inflation and input costs, but the senators disagreed based on data that indicated otherwise. They noted that fast-food prices have risen more than inflation since the pandemic, with McDonald’s increasing menu prices significantly. The senators pointed out that McDonald’s net income soared by 79 percent, almost $8.5 billion, between 2020 and 2023. They emphasized that corporate profits should not come at the expense of people’s ability to afford food and requested McDonald’s cooperation in understanding the reasons behind the price hikes. In response, McDonald’s stated that the company and its franchisees are committed to maintaining affordable prices and criticized the senators’ letter, calling it a misinterpretation of their franchise business model with inaccuracies. McDonald’s assured that they would reply to the Democrats’ letter and continue serving their customers. This letter came after another political event involving McDonald’s, where former President Trump made a campaign appearance at a Pennsylvania McDonald’s, working the drive-thru and french fry station as a stunt to criticize Vice President Harris’s past employment at the chain. Source Link.
