McDonald’s and other big brands warn that low-income consumers are starting to crack

https://www.cnbc.com/2024/04/30/companies-from-mcdonalds-to-3m-warn-inflation-is-squeezing-consumers.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

by MBlaizze

18 comments

  1. Their plan to fix it you ask? To raise prices of course. 

  2. I wonder why? Nice profits you got there, be a shame if they disappeared

  3. The US fast food industry was built on an unsustainable model, totally dependent on workers willing to work for slave wages and putting the burden on the taxpayers for their safety net and healthcare. Now that we’re in a hot labor market and no one is willing for minimum wage anymore the chickens have come home to roost. They could raise prices, but they know the food is crap and people won’t pay a lot more for it.

    We’ll see if the fast food industry can adapt. If not, no big loss. People will be better off cooking healthy meals at home.

  4. Oh no we didn’t meet wall street expectations! What ever will we do with our record profits? We only have $12,000,000,000-$14,000,000,000 to work with every year. So convenient to blame a strawman instead of lowering prices.

  5. If people are still spending money at McDonalds then they are either:

    Not poor

    Terrible with money anyway

  6. Totally misread the title of the article. I thought it said McDonald’s warns low income consumers are starting to do crack.

  7. Maybe because your meals are outrageously priced

  9. Could it be the 25 dollar for a meal and a drink ?? Gee our cheap ingredients burger and fries is 18 bucks and no one is buying. /s

  10. Getting burgers elsewhere is not ‘cracking’ -but hilarious that they see it that way

  11. Omg they’ve been cracking, they’re just taking out loans, credit cards and BnPL to pay for things. It’s all just been on debt.

  12. McDonald’s to investors: “Sales are declining. Therefore , we need to increase prices

    “To the moon” they’ll say

  13. So, we can all agree that we should boycott these corporations, right? Make them sweat and bend to market pressures.

    No? People are going to keep giving their money to crooked corporations anyway? Okay.

  14. This is literally the core argument of Marxism, for anyone who still thinks communists simply hate freedom. You can’t pay workers less than subsistence wages and think your corporate profits will still go up.

  15. That’s what happens when you raise the prices of your products +53%.

  16. Starting lmfao? Starting what? Starting to run out of room on the credit cards? Cracks have been there for a while! The dam is just about to burst open that’s what they mean

  17. Shouldn’t we be celebrating? McDonald’s being successful really isn’t healthy for anyone.

  18. Something to think about: A large part (93%) of McDonald’s revenue comes from its franchise operations. McDonald’s doesn’t own but a small number of actual stores. If you are eating at McDonald’s, that McD is locally-owned and operated (ish, because some LLC might own 5 or 6 stores).

    McDonald’s then leases the real estate to the owner of the franchisee. The franchise owner has to buy product from McDonald’s plus pay for the lease to McD’s. Thus, McD’s can pull strings on product costs or maybe increase the lease amount.

    Here is a good article on How McDonald’s Makes Money [https://www.investopedia.com/articles/markets/032015/how-mcdonalds-makes-its-money-mcd.asp](https://www.investopedia.com/articles/markets/032015/how-mcdonalds-makes-its-money-mcd.asp)

    Or watch The Founder (2016; starring Michael Keaton), the documentary about Ray Kroc and how he turned a burger joint into a real estate company. Because McD’s is a real estate company.

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