McDonald's CEO issues statement in response to increased costs

Fast food restaurants like McDonalds all throughout the nation have raised their prices as rising labor and food costs translate into larger totals for patrons.

With consumer complaints about fast food costs getting worse, the CEO of McDonald's has a fresh outlook on the company's future plans. Fast food restaurants all throughout the nation have raised their prices as rising labor and food costs translate into larger totals for patrons. However, there have been several methods to see the response. The media stated that Yum Brands' main brands, including KFC, Taco Bell, and Pizza Hut, grew at a slower rate than anticipated in the fourth quarter, while McDonald's reported disappointing results. According to McDonald's President and CEO Chris Kempczinski, customers making $45,000 or less a year were spending less and making fewer trips. According to Kempczinski, those consumers are more likely to eat at home now that grocery inflation has decreased.

Kempczinski thus pledged that the company's affordability would be a priority this year. McDonald's uses marketing that highlights affordable options in an effort to entice those customers back to its locations. It's unclear what those cost-effective choices would include or whether price reductions are planned. McDonald's stated to media outlets that while franchisees choose the price, it varies depending on the geography, and the firm aims to balance value.

The announcement coincides with the company's promotion of a number of recent initiatives, such as the opening of CosMc's, a new concept restaurant in the Bolingbrook, Illinois, suburb, and a pledge to open almost 10,000 new locations over the following four years.