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The Markets
by Proactive
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The Markets
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Food & drink

McDonald's ups prices again and blames inflation

McDonald's will raise the prices of some of its products for the second time in six weeks, as higher costs continue to bite

McDonald's Corp has recommended its restaurants raise prices for the second time in just six weeks, blaming higher energy and supply costs.

“Increasing costs continue to affect our company, our franchisees and our suppliers,” a spokesperson said.

The latest move follows rises just six weeks ago on several burgers and drinks.

A cup of McDonald’s coffee will is being raised 20% to £1.19, from 99p, though it failed to specify the other items facing price hikes.

“We carefully review and adjust our prices,” the spokesperson added, though individual owners of its 1,382 franchised restaurants do also have a say in how much they charge.

Greggs PLC (LSE:GRG) and JD Wetherspoon PLC (LSE:JDW) have also lifted prices recently, with the former raising the cost of a sausage roll four times in the past year.

This helped restaurants and pubs increase revenues in February, according to Coffer CGA Business Tracker, with 6.9% and 1.9% higher UK sales respectively.

Globally, McDonald's outdid fourth-quarter expectations in January, posting revenues worth US$5.93bn with international sales up by 12.6%.

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