NATIONAL NEWS

$3 for a single McDonald’s hash brown? Customers are fed up and pushing back

Feb 8, 2024, 10:51 AM

NEW YORK (CNN) Corporate America may be bumping up against the limit of its power to keep raising prices as consumers in some markets cry uncle.

At McDonald’s, which has repeatedly boasted about its ability to raise menu prices without denting sales, executives are finally acknowledging that customers need a break.

On Monday, as the burger chain reported weaker-than-expected sales at its U.S. stores, CEO Chris Kempczinski addressed McDonald’s “affordability” problem, and indicated the chain would cut prices on some menu items.

“Eating at home has become more affordable,” Kempczinski said.

He’s right: Grocery prices are still high, but they rose just 1.3% overall in 2023, while dining out surged 5.2%, according to the latest Consumer Price Index report.

That’s putting pressure on lower-income consumers, a vital base for the chain.

“We actually saw that cohort” — customers making $45,000 or less — “decrease in the most recent quarter,” he added.

Kempczinski didn’t offer details on the timing or size of any price cuts. But his focus on affordability marked a shift from just a few months ago, when he boasted that U.S. menu prices, which went up as much as 10% in 2023 alone, weren’t deterring sales.

“Even though we’re pushing through pricing, the consumer is tolerating it well,” he said in an October analyst call.

In a statement to CNN, McDonald’s declined to comment on specific price cuts but reiterated its commitment to providing affordable options to consumers.

While inflation has slowed significantly, prices for everyday necessities remain high, and people are getting fed up. McDonald’s has become a regular target for social media users complaining about prices. Viral stories lamenting the cost of a Big Mac meal — particularly the $18 ones at a widely maligned Darien, Connecticut, location off I-95 — have become a TikTok genre unto themselves.

At the core of those widely shared sticker-shock moments is a genuine angst over the cost of basic needs like food — especially food that’s meant to be affordable.

On TikTok, it’s a common refrain for McDonald’s customers to say the company has gone too far, charging more than $3 for a single hash brown in some locations.

“Who told y’all y’all was that good to be charging that much for your food?” quips one user in a TikTok video titled “McDonald’s has gotten too cocky.”

Other popular videos call out the audacity of a medium French fry costing roughly as much as a Filet-o-Fish.

Because most McDonald’s restaurants in the United States are independently owned, prices vary depending on where you are. (So if you find yourself pulling off the highway for a quick bite at a travel center in Darien, one of the richest towns in America, you can reasonably expect your meal to cost significantly more than you would at a suburban drive-thru outside of Des Moines.)

Still, up until recently, McDonald’s found most customers were still willing to pay. And even now, wealthier customers appear undeterred, Kempczinski said Monday.

For middle- and high-income groups, “we’re not seeing any real change in behavior,” he said. “We continue to gain share with those groups. But the battleground is certainly with that low-income consumer.”

In other words, it may be time to bring back the Dollar Menu. Kempczinski said McDonald’s would double down on its “D123” strategy, which prices some items between $1 and $3.

KSL 5 TV Live

National News

Pete Hegseth, President-elect Donald Trump's choice to be Defense secretary, gives a thumbs-up at t...

Lisa Mascaro, Mary Clare Jalonick and Farnoush Amiri, Associated Press

Hegseth confirmed as Trump’s defense secretary in tie-breaking vote despite turmoil over his conduct

The Senate confirmed Pete Hegseth as the nation’s defense secretary in a dramatic late-night vote.

1 hour ago

In this Friday, Nov. 10, 2017 photo, a rhesus macaques monkey observes kayakers as they navigate al...

Associated Press

Last 4 escaped monkeys are captured in South Carolina after months on the loose

Officials say they have recaptured the final four monkeys who escaped two months ago from a South Carolina compound.

4 hours ago

FILE - Water is dropped by helicopter on the Palisades Fire in Mandeville Canyon, Jan. 11, 2025, in...

Any Taxin, Associated Press

Trump targets California water policy as he prepares to tour LA fire damage

As President Donald Trump prepares to tour wildfire damage in California, he's zeroing in on one of his frequent targets for criticism: State water policy.

9 hours ago

FILE - The Ford company logo is seen, Oct. 24, 2021, on a sign at a Ford dealership in southeast De...

Associated Press

Ford recalls more than 270,000 Broncos and Mavericks due to loss of power problem

Ford Motor Co. is recalling 272,827 Broncos and Mavericks due to a power problem that can cause vehicles to stop unexpectedly or fail to start.

11 hours ago

First lady Melania Trump looks on as President Donald Trump speaks with reporters before boarding M...

Will Weissert and Christ Megerian, Associated Press

Trump departs White House to visit disaster zones in North Carolina and California

President Donald Trump is heading to hurricane-battered North Carolina and wildfire-ravaged Los Angeles.

12 hours ago

A general view outside the United Healthcare corporate headquarters is seen here on December 4 in M...

Ramishah Maruf, CNN

UnitedHealthcare has a new CEO

UnitedHealthcare announced a new CEO on Thursday, filling in the spot after Brian Thompson was shot and killed in midtown Manhattan in a targeted attack.

23 hours ago

Sponsored Articles

holiday gift basket with blue tissue paper and gingerbread cookies...

Kneaders Bakery & Cafe

Holiday hacks for a stress-free season

Get more out of your time with family and loved ones over the holidays by following these tips for a stress-free season.

2 computer techs in a computer shop holding up a computer server with the "hang loose" sign...

PC Laptops

A comprehensive guide to choosing the right computer

With these tips, choosing the right computer that fits your needs and your budget will be easier than ever.

crowds of people in a German style Christmas market...

This Is The Place Heritage Park

Celebrate Christkindlmarket at This Is The Place Heritage Park!

The Christkindlmarket is an annual holiday celebration influenced by German traditions and generous giving.

Image of pretty woman walking in snowy mountains. Portrait of female wearing warm winter earmuff, r...

Lighting Design

Brighten your mood this winter with these lighting tricks

Read our lighting tips on how to brighten your mood in the winter if you are experiencing seasonal affective disorder.

A kitchen with a washer and dryer and a refrigerator...

Appliance Man

Appliance Man: a trusted name in Utah’s home appliance industry

Despite many recent closures of local appliance stores, Appliance Man remains Utah's trusted home appliance business and is here to stay.

abstract vector digital social network technology background...

Les Olson

Protecting yourself against social engineering attacks

Learn more about the common types of social engineering to protect your online or offline assets from an attack.

$3 for a single McDonald’s hash brown? Customers are fed up and pushing back