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McDonald’s evaluates affordability as meals make big deals online
Market responds to McDonald’s decline amidst affordability concerns
When contemplating fast food, the terms “quick” and “affordable” often come to mind.
However, McDonald’s has faced criticism from some customers due to recent increases in menu prices. In response, CEO Chris Kempczinski addressed the issue of affordability during the company’s latest earnings call.
On Monday morning, Kempczinski discussed McDonald’s mixed fourth-quarter results, the global market impact of ongoing conflicts in the Middle East and Muslim communities, and strategies to reconnect with lower-income customers. Following the release of the earnings results, McDonald’s shares experienced a nearly 4% decline on the New York Stock Exchange by the closing bell.
Many menu prices differ across locations in the U.S. as franchises have the autonomy to establish their own pricing and decide whether to participate in corporate promotions.
