On December 25th, # McDonald's responded by raising prices # and made it a hot search on Weibo.
Recently, a netizen reported that "McDonald's will raise prices for all its main products on December 27th, with nearly 90% of its main hamburger and snack products listed at a price increase of 0.5 yuan starting from December 27th. The price of the McCartney package will also increase by 1 yuan."
Regarding this, a reporter from Securities Times · e Company called the relevant person in charge of McDonald's China Public Relations Department, and as of the time of publication, no comments were received.
On the afternoon of December 25th, regarding whether the price adjustment situation is true, McDonald's China customer service responded to the media by stating that starting from December 27th, some individual products and packages have been adjusted, and the prices have been clearly displayed in various ordering channels. Customers can open the McDonald's China app to select the corresponding dining hall, and the prices of the products have been clearly displayed in the store and online ordering channels. As for the reason for the price increase, the other party stated, "Considering the changes in operating costs, we regularly evaluate and adjust the price structure.".
Regarding which restaurants across the country are involved in the price adjustment, McDonald's China customer service responded that the product prices and promotional activities offered by different restaurants may vary depending on the different business districts and communities they belong to. The specific pricing information will be based on the prices displayed in the store and digital ordering channels.
Jiang Han, a senior researcher at Pangu Think Tank, told Securities Times · e Company reporters that the reasons for McDonald's price increase may include rising raw material prices, rising labor costs, and increased transportation costs. These factors will all affect McDonald's costs, and if prices are not raised, it will be difficult to maintain operations. In addition, with the development of the economy and the improvement of living standards, people's requirements for the quality and taste of food are also increasing. McDonald's may need to raise prices to meet these requirements while ensuring product competitiveness. Overall, the reasons for fast food brand price increases may be multifaceted, including rising costs and consumption Upgrade and other factors. "
On October 30th, McDonald's (NYSE: MCD) released its third quarter results as of September 30th, 2023. In the third quarter, McDonald's achieved a revenue of 6.692 billion US dollars, a year-on-year increase of 14%; Net profit was 2.317 billion US dollars, a year-on-year increase of 17%. Among them, in the third quarter, the same store sales growth of the international development franchise market sector, including China and Japan, reached 10.5%, but the growth rate was slightly lower than the same period in 2022.
Thanks to the growth in same store sales and the addition of new stores, McDonald's China's sales and overall growth in the first half of this year far exceeded pre pandemic levels. As of June 30th, the number of McDonald's Chinese restaurants has increased to over 5400, doubling from 2017, with nearly half located in third - and fourth tier cities. This year, McDonald's also stated that the company will continue to open new stores in China at an average rate of one every 10 hours.
"By 2028, McDonald's China will sprint to reach the size of over 10000 restaurants in first to fifth tier cities, with high tier cities still having significant growth potential. Overall, volume is not the main goal, 'stronger' is the key." In August of this year, McDonald's China CEO Zhang Jiayin stated to the public.