McDonalds Prices Just Got Worse And What Comes Next | The Economic Ninja

➡ The Economic Ninja talks about how McDonald’s prices are rising significantly due to inflation, making it too expensive for many customers. The cost of a Big Mac meal has reached $18 in some places, and even a coffee has gone from $1 to $1.79. This increase is due to rising costs of insurance, equipment, and labor, and experts predict prices will continue to climb as wages increase. As a result, McDonald’s is losing customers, especially those earning less than $45,000 a year.

It. Hey, everybody, economic ninja here. I hope you’re doing well. You know what’s not doing well? The price of a Big Mac at McDonald’s. Big macs and prices across the board at McDonald’s are getting out of control. And we’re gonna talk about that today. We’re gonna talk about inflation and the next wave of inflation. Inflation. 20. Okay, I got a great story out of the New York Post right here, and it’s entitled why McDonald, why McDonald’s is charging $18 for a Big Mac meal, and why there’s no relief in sight.

It says low income customers making less than $45,000 per year have largely stopped ordering from McDonald’s. The fast food giants chief executive Chris Kim Kaminsky admitted Monday on an earnings call with Wall street analysts. A Big Mac, fries and drink have risen to nearly $18 at a handful of locations, while hash browns are up to $6. And it’s driven away, customers fed up with inflation. The sad thing is that McDonald’s was forever the go to place for low income households, quite frankly.

Now, why does the ninja go to McDonald’s? Because of this. This coffee, even as when I started, this YouTube channel was a dollar. If you got a buck, you’re in luck, right? You got a buck, you get a coffee. And I used to always tell, sorry about the wind. It is nutty out here. Crazy wind going on. So the camera is going to be all over the map.

I’ve got the camera guarded by the vehicle and it’s still blowing everywhere. But I used to talk about the difference between someone that bought a Starbucks coffee every day and said they didn’t have money to save, but then you could just go and buy this and every day save three, four, maybe even $5 a day. And that was the difference, right? That’s the difference between successful people and not successful people.

So I still buy this. When I started the channel, this was a buck. This is the most I’ve ever paid for a McDonald’s large coffee. A dollar 79. But I still come here for this if I want a coffee, because I don’t want to pay three, four, five, $6 for a coffee. Most time, if I have a choice, I’m going to go here. Right? Well, the fact is people are leaving McDonald’s right now because it’s getting too outstanding.

It says global. Same store sales in the latest quarter had grown just 3. 4%, falling short of the 4. 7% growth Wall street had expected. And largely driven by menu price increases. The company said this week, eating at home has become more affordable, the CEO says. The battleground is certainly with that low income consumer. Last week, a McDonald’s outpost in Connecticut got slammed for its outrageous pricing after a customer was charged $7.

29 for an egg McMuffin. Oh my gosh. It’s one thing to know this is coming, but inflation and warning people, but when it actually happens, it’s so insane and we haven’t even hit hyperinflation yet. They said they got charged for 729 for an egg McMuffin and 569 for a side of hash browns. Over the summer, a franchise in nearby Darren, Connecticut, was called out for charging 1759 for a Big Mac combo meal.

That location also sold a quarter pounder with cheese and bacon meal that came with fries and soda for $19. Amid the uproar, McDonald’s franchisees say they are being financially squeezed by the rising cost of insurance, equipment and labor. And if you remember, California really led the charge in the whole labor dispute thing with fast food workers. I got a quote from my insurance and it went up 31% and the cost of equipment is out of this world gripped one operator who did not want to be identified.

Experts warn that fast food prices will climb even higher as medium wage hikes are implemented across the country. California $20 an hour minimum wage for fast food workers goes into effect in April, McDonald’s and Chipotle both announced that this would be the hiking, be hiking. Sorry, that they would be hiking prices of menu items at Golden State locations beginning this year. Still, McDonald’s price increases last year exceeded the industry average of 7.

6%, according to the restaurant research firm Kectomic. Analysts say there’s a limit on how much of these costs restaurants can pass on to consumers who were accustomed to menu price hikes between one and 3% before the pandemic. Look, the fact of the matter is we have way more to worry about when it’s concerning prices going up than what happened with the pandemic. Why is that? Because of out of control spending and money printing by the Federal Reserve and the US government, two totally separate entities, it is going to get worse.

And as more laws, draconian laws, hit the books, like the $20 fast food thing, if you don’t like how much you’re getting paid at this place, leave. Go across the street in this same mall, there’s a Rayleigh shopping center and they probably pay more and you can get a little bit more, benefits included. But the fact of the matter is the public are outcrying and the government wants them to vote a certain way.

So, hey, you know what? We’ll give you more money. In all reality, what’s going to do is slowly put places out of business and watch what happens when all of a sudden, you start seeing companies like McDonald’s start freaking out because they’re already saying we’re losing a big majority of people that make under $45,000 a year. That’s staggering. I hope you got something out of this. Thank you so much for watching.

The economic ninja is out. .

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