McDonald’s to hike prices as commodity costs rise

[Joanne98]

Source: Chicago Tribune

McDonald’s Corp. will raise prices in the U.S. this year to combat rising commodity costs, the company said in its fourth-quarter earnings call Monday morning.

The Oak Brook-based burger chain estimates that ingredient costs will rise 2 percent to 2.5 percent, with some of those costs passed on to consumers.

“As commodity and other cost pressures become more pronounced as we move throughout the year, we will likely increase prices to offset some, but not necessarily all, of these cost increases,” McDonald’s chief financial officer Pete Bensen said on the call.

He added that “growing traffic and market share has been a key to our success” in recent years, so the company will seek to balance a need for “strong traffic momentum with any strategic pricing moves.”



Read more: http://chicagobreakingbusiness.com/2011/01/mcdonalds-4q-profit-up-on-strong-global-sales.html

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The rise in food prices will be one of the hottest stories in 2011.

IMO

[meegbear]

1. A Dollar Value item will cost $1.025?1!?

STOP THE INSANITY!!!11!

[Bobbysox22]

9. Current price rises are just the beginning.

Everything runs on oil or is made of oil or is delivered by transport that uses oil. Oil is close to $100. Inflation is inevitable. We had this once before in the 70s and 80s. This time it will be much worse.

[BOG PERSON]

2. pictured: mcdonalds eaters react to news of rising burger costs

[closeupready]

4. He had a twisted mind, Goya, didn't he?

But he's one of my favorites, lol.

[GodlessBiker]

3. I wonder what the cost per calorie at all these fast-food places would be.

Add up the dollar amount and the calories for everything on the menu of each fast food chain, and divide the former by the latter. Let's see if that number is good basis to compare.

[Kolesar]

5. "Prices so cheap, you wonder where they get their meat"

Lost attribution

[formercia]

13. My brother is in the meat business

He sells to upscale restaurants and similar clientele. He eats his lunch on the road at McD's. He told me the meat is of good quality.
I like his prime cuts better, but who is to argue?

[Kolesar]

15. IIRC, McDonald's did endeavor to implement more humane standards

for treating the food animals. They were pressured by vegetarian activists.

[Lint Head]

6. Maybe people will stop eating the food that kills us all.

[laundry_queen]

7. I agree with you.

Looks like a few others don't get it, but you do. The hike in food prices is going to be a big story this year. Already, sizes are shrinking by some 20% while prices stay the same, giving you less for your money. Disasters around the world are not helping things. Our local news last week said that the price of leafy greens was set to double in the next month. McDonald's hiking their prices is the canary in the coal mine.

[Joanne98]

10. I'm growing a HUGE garden this year.

[Bobbysox22]

8. Stagflation.

That's what's underway.

[no_hypocrisy]

11. In the early Seventies, a McDonald's hamburger cost 15 cents.

[louis-t]

14. 1971-72, I worked in a hamburger joint. As I recall,

their prices were 20 cents for hamburger, 25 cents for cheeseburger. We might have been a nickel cheaper than McDonald's. They used real meat, had a great steak sandwich (not chopped)for 59 cents. Of course, I only made $1.20 an hour.

[Sonoman]

12. The rise in prices is already wreaking havoc across the globe.

How in the hell did Mexico's corn price double over the last few years?

Onions in India?

Bulgur in Russia and Middle East?

Rising food prices can starve populations just as quickly as supply problems, drought, or pestilence.

I wonder who is pocketing all of those profits.

Sonoman

[JNelson6563]

16. Oh dear!

Now Americans will have to pay more for the crap that's making us all fat and miserable.

[jxnmsdemguy65]

17. The predictions get much worse...

http://www.dailymail.co.uk/sciencetech/article-1350009/Food-prices-rocket-50-global-hunger-epidemic-causes-riots-famines.html