One way McDonald’s Corp. (NYSE: MCD) has made money in the past decade is by going beyond increasing its store count. A new study shows that, over the past 10 years, it has raised the prices of some of its most popular menu items at a rate substantially outpacing inflation.
A new study by FinanceBuzz examined menu prices at McDonald’s, Popeyes, Taco Bell, Chipotle, Jimmy John’s, Subway, Starbucks, Taco Bell, Arby’s, and Burger King, along with several smaller fast-food companies, over the past decade. The authors wrote, “The restaurants we evaluated raised prices by 60% on average between 2014 and 2024. That means they’ve raised prices at a rate nearly double the national rate of inflation.”
The rate at which McDonald’s raised prices was three times the pace of inflation over the period. And, in many cases, it doubled the price of menu items. (See which is the most popular fast-food chain in each state.)
Among McDonald’s most popular food and drinks, the price of medium fries rose 138% to $3.97. Another example is the price of a Quarter Pounder with Cheese meal, which rose 122% to $11.99.
What the study does not show is the rate at which prices for ingredients for menu items grew. The consumer price index for the past three years was driven, in some cases, by food prices.
The study does show McDonald’s pricing power. Its revenue has continued to rise over the past decade. And the company has remained profitable.
∴
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.