Rising Cost of Burger

As ingredients for Big Macs, McNuggets and other items have become more expensive McDonald's, the world's biggest restaurant chain, expects that more price hikes for its meal could be coming this year. 

  • Data from the U.S, Bureau of Labor Statistics shows that costs for key burger ingredients between Jan. 2019 and Jul. 2022 increased from 9% for species to 117% for wheat (key component in production of buns)
  • McDonald’s U.S. food and paper costs were up by about 4% in 2021, and management anticipates about a 8% increase in 2022, with more pressure earlier in the year. Management notes that this will pressure both margins and cash flow.
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