McDonald’s is growing, Despite a Significant Price Rise

McDonald’s 3Q22 comps improved +6.1% because to a +10% menu price increase and strong traffic, which were somewhat offset by a fall in mix. Notably, MCD is able to push through menu pricing hikes that are delivering a 70% flow-through because to the brand’s outstanding customer scores in the areas of affordability and value for money (a $1 menu price rise results in an additional $0.70 in sales, in line with its historical range). In conclusion, compared to Chipotle’s +15% menu price rise, McDonald’s +10% pricing increase looked to be more tolerable. This could mean that for customers who still want to treat themselves to eating out, McDonald’s pricing are the most affordable option available (or as a necessity).