Three Senate Democrats accused McDonald’s of ripping off consumers in a letter sent Monday, just after former President Donald Trump made a campaign stop at a franchise in Pennsylvania.
Democratic Sens. Elizabeth Warren of Massachusetts, Bob Casey of Pennsylvania and Ron Wyden of Oregon sent their letter to McDonald’s CEO Chris Kempczinski, writing that “while working families are trying to make ends meet, McDonald’s and its corporate counterparts have continued to grow their profits.” The lawmakers sent the letter, first reported by to NBC News, one day after Trump stopped by a McDonald’s in suburban Philadelphia to man the french fry station and poke fun at Vice President Kamala Harris’ disputed claims that she worked at a McDonald’s franchise in her youth.
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“Since 2020, the Consumer Price Index has increased by 20 percent, but McDonald’s may have increased its menu prices for certain items by substantially more,” the senators wrote in their letter. “A recent analysis of six popular fast food chains (McDonald’s, Taco Bell, Chick-fil-A, In-N-Out Burger, Burger King, and Jack in the Box) found that 27 out of 30 menu items experienced price increases that outpaced inflation.”
“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,” the letter continues. “A recent analysis found that McDonald’s markup (i.e. the difference between the prices consumers pay and the cost of production) was 85% in 2023. McDonald’s operating profit margins were 52% in the same year, the highest of the ten largest publicly traded fast food companies.”
McDonald’s contested the suggestion that the company has gouged consumers in a statement shared with the Daily Caller News Foundation.
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“McDonald’s and our franchisees are committed to keeping prices affordable – from the everyday prices on our menu boards, to our popular $5 Meal Deal and other offers available locally or on the App. This letter demonstrates a lack of understanding of our franchise business model and contains contortions of facts and many inaccuracies,” the company said in its statement. “Take the components of the $5 Meal Deal with McChicken, for example – which would have cost 15% more in 2020 than they do today. That’s the opposite of price gouging. We will respond to the letter, and in the meantime, continue to show up for our customers and our communities.”
Joe Erlinger, president of McDonald’s USA, pointed to economy-wide inflation as a key factor driving up menu prices in May, according to RestaurantDive. Democrats have frequently tried to blame corporate greed for price increases that many other pundits and economists have tied to high inflation caused in large part by excessive government spending, such as President Joe Biden’s decision to malign energy companies for the record-high gas prices observed in the summer of 2022.
The offices of Casey, Warren and Wyden did not respond immediately to requests for comment.
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First published by the Daily Caller News Foundation.