Elizabeth Warren Blasts McDonald's Over Prices Raising Prices Faster Than Inflation — 'Corporate Profits Must Not Come At The Expense Of People's Ability To Put Food On The Table'

On Thursday, Sen. Elizabeth Warren (D-Mass.) slammed McDonald’s Corporation MCD for raising prices “faster than inflation.”

What Happened: The senator said on X, “Corporate profits must not come at the expense of people's ability to put food on the table.”

McDonald's has squeezed their customers (who don't just go there for a photo-op) by raising prices faster than inflation.

Corporate profits must not come at the expense of people's ability to put food on the table. https://t.co/20j5O9awqQ

— Elizabeth Warren (@ewarren) October 24, 2024

Notably on Monday, Warren, Sen. Bob Casey (D-Pa.), and Sen. Ron Wyden (D-Ore.) addressed a letter to Chris Kempczinski, the CEO of McDonald’s, seeking an explanation for the company’s pricing decisions in the wake of rising fast food prices.

The Senators emphasized that while McDonald’s isn’t the only fast food chain to raise prices, its dominant market position in the U.S. significantly affects consumers. They stated, “While working families are trying to make ends meet, McDonald's and its corporate counterparts have continued to grow their profits.”

Despite McDonald’s USA President Joe Erlinger attributing menu price increases to inflation and input costs, the Senators noted that fast food prices have consistently outpaced inflation since the COVID-19 pandemic. They disclosed that while overall inflation has risen by 20 percent since 2020, McDonald’s has increased its menu prices substantially more. Meanwhile, the company’s net annual income surged by over 79 percent, nearly $8.5 billion, from 2020 to 2023.

McDonald’s did not immediately respond to Benzinga’s request for comments.

See Also: Peter Schiff Warns Investors Against Keeping $20K In Cash: ‘One Of The Riskiest Bets You Can Make’

Why It Matters: While increasing prices, McDonald’s also spent nearly $7 billion on stock buybacks in 2022 and 2023, benefiting from a tax loophole favoring buybacks. The Senators argued this prioritizes Wall Street shareholders over investments in McDonald’s own business and workers.

In 2022, McDonald’s franchisees began raising drink prices due to inflation and supply chain constraints. By 2024, the fast food giant faced criticism for historic price increases of over 200% on some menu items. The same year, an E. coli outbreak linked to McDonald’s Quarter Pounder burgers led to a drop in the company’s stock.

Meanwhile, McDonald’s shares have been under pressure lately as Centers for Disease Control and Prevention are in the midst of a “fast-moving outbreak investigation” related to E.Coli and McDonald’s Quarter Pounder hamburgers.

Price Action: On Thursday, McDonald's stock traded 1% higher at $301.58 in the regular session and was largely flat in the after-hours trading, according to data from Benzinga Pro.

Photo by Sheila Fitzgerald on Shutterstock

Read Next:

• Jobless Claims Fall More Than Expected, Continuing Benefits Surge To Nearly 3-Year Highs: Labor Market At ‘Full Employment,’ Analyst Says

This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal