Blog de Dunlap: McDonald’s

Danielle, customers who order at McDonald's frequently — who don't just go there for a photo-op — may have started to notice something different on the menu lately.

No, it's not the return of the snack wrap. It's higher prices.

Now, while McDonald's is not the only fast food restaurant that has increased prices significantly, as the largest fast food chain in the United States, this has a particularly outsized impact on consumers.

And we've heard the same "company who cried inflation" story as to why — McDonald's USA President Joe Erlinger has attempted to blame the price increases on inflationary pressures and input costs. But the data tells another story.

Since the COVID-19 pandemic, fast food prices have consistently outpaced inflation, and since 2020, overall inflation has increased by 20 percent, while McDonald's has increased its menu prices for several items substantially more. McDonalds net annual income rose by over 79 percent — nearly $8.5 billion, from 2020 to 2023.

While McDonald's was raising prices, the company also spent nearly $4 billion on stock buybacks in 2022 and $3 billion in 2023. The company also benefits from a tax loophole that favors buybacks. This prioritizes Wall Street shareholders over investments in McDonald's own business and workers.

So Senators Casey, Wyden, and I called on McDonald's President and CEO, Chris Kempczinski, to share more information on McDonald's increased pricing decisions, and whether executives received bonuses or other incentive-based compensation from 2020 to 2024 based on their ability to increase per-customer profits.

Fast food corporations are squeezing customers to make massive profits, paying out billions to wealthy shareholders, and then turning around and blaming inflation for high costs. It's not right — and something must be done about this. Please add your name to say you're with me in this fight.

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This is part of a major trend we're seeing right now: Corporations are citing inflation this, inflation that, when it comes to defending their rising prices — all while their profits have surged over the past few years, outrunning inflation by miles.

Price gouging certainly isn't a new trend. But during the COVID-19 pandemic, big corporations took advantage of the crisis to prey on consumers by price gouging, hiding behind inflation and supply chain disruptions to do it — and we're still paying the price.

So I've fought back by reintroducing my Price Gouging Prevention Act, which would:

Prohibit price gouging at the federal level — anytime and anywhere.
Target dominant companies that have exploited the pandemic to boost profits — including companies that brag about increasing prices during periods of inflation.
Require public companies to clearly disclose costs and pricing strategies at certain times.
Provide additional funding to the FTC for enforcement.

I am frankly sick and tired of giant corporations seizing any opportunity to raise their prices and pad their profits on the backs of working people. Please add your name if you agree, Danielle: Enough is enough.

Thanks for being a part of this,

Elizabeth