Beef prices increase, McDonald’s McDouble raises prices

Beef prices increase, McDonald’s McDouble raises prices (Alberta Times) The one-dollar cheeseburger launched by the McDonald's fast-food chain in 2008 has always been very popular...

(Alberta Times)

The one-dollar cheeseburger launched by the McDonald's fast-food chain in 2008 has always been very popular. However, as the increase in beef prices affects the company's profits, it is increasingly difficult to maintain such cheap and delicious meals. Many franchise stores have increased their prices or not listed them on the menu at all. McDonald's launched another dollar grilled onion cheeseburger in December last year, and advertised this new burger with only one patty, alongside the McDouble with two patties. The problem for McDonald's is that McDouble ingredients cost the most among dollar meals, so unless customers buy higher-margin products such as French fries or soda as a side item, the restaurant may not be profitable. Many McDonald's franchisees have removed the McDouble from their one-dollar meals or increased their prices. The McDouble is priced at $1.09 in San Francisco, $1.19 in Los Angeles, $1.80 in Kodiak, Alaska, and $1.89 in New York City. McDonald's in Chicago and Boston do not list McDouble on their menus. If customers specifically request it, the price is 1.29 yuan and 1.49 yuan respectively. McDonald's stores in Phoenix, Fresno, Calif., Denver, St. Louis and Washington, D.C., still list the McDouble as a one-dollar meal. McDonald's is changing its marketing strategy to stem two consecutive years of declining profits at its 14,000 U.S. stores while further emphasizing its famous dollar meals to attract cash-strapped customers and compete with rivals such as Burger King and Taco Bell. McDonald's, which has a history of adjusting its one-dollar meals as food prices soar, is now actively trying to stem the damage to profits caused by rising beef prices. The unprecedented drought in the United States last summer seriously affected the food supply system. Beef prices have been rising and will remain high for at least the next two years. This year alone, ground beef prices have increased by six to eight cents per pound.