Global fast food giant McDonalds has recorded its first drop in revenue since 2020, after they raised prices earlier this year – some say by too much.
If you visited the golden arches recently, you’ll probably have noticed prices for their burgers are on par with some of the more high-end burger restaurants. It kind of defeats the purpose of places like McDonalds in the first place.
It seems the price hikes are finally having an effect on sales.
McDonald’s CEO Chris Kempczinski said in a statement that “consumers still recognise us as the value leader versus our key competitors”.
But he conceded that “it’s clear that our value leadership gap has recently shrunk.”
“We are working to fix that with pace,” he added.
They’re also facing a drop in sales worldwide due to ongoing boycott over its perceived support of Israel’s military occupation of Gaza.
McDonalds head office recently took over ownership of all 225 McDonalds restaurants in Israel after franchisee company Alonyal announced it would give free meals to anybody servicing in the Israeli military.
Will these results mean McDonalds might finally drop its prices back down? We can hope, but I wouldn’t hold your breath.
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