McDonald’s earnings fall short as diners push back on rising prices

BATTLE FOR AFFORDABILITY, FORCING THESE FAST FOOD CHAINS TO COMPETE FOR DINERS. FAST FOODIES ARE FED UP RANTING ABOUT WHAT THEY SEE AS NON-VALUE MEALS. >> $17 FOR THREE FILLET OF FISHES AT McDONALD'S? ARE YOU KIDDING ME? >> AFTER TWO YEARS, BIG COMPANIES FINALLY FEELING THE PUSH BACK FROM DINERS. McDONALD'S PROFITS FALLING SHORT OF EXPECTATIONS, A RARE STUMBLE. TODAY'S CONSUMER IS BEING PICKY ABOUT HOW THEY SPEND THEIR MONEY AND THE COMPANY NEEDS TO BE LASER FOCUSED ON AFFORDABILITY. >> THE COMPANY HAS SPOKEN. >> IT'S FRUSTRATED BY THE PRICES THEY ARE PAYING AT FAST FOOD RESTAURANTS AND THEY ARE ABSOLUTELY VOTING WITH THEIR FEET. >> COOKING AT HOME, WHERE FOOD INFLATION IS COOLING. INFLATION MEASURING FOOD AT HOME ROSE JUST 1.2% IN MARCH VERSUS A YEAR AGO, COMPARED TO 4.2% FOR FOOD AWAY FROM HOME, WHICH INCLUDES FAST FOOD. THOSE CUSTOMERS ARE INCREASINGLY REVOLTING AT REPEATED PRICE INCREASES. MOTHER OF FIVE SAYS IF PRICES GET ANY HIGHER, SHE'LL SKIP THE DRIVE THROUGH. >> WE'RE LOOKING AT $10, $11, 12 DLSH SOMETIMES FOR JUST ONE MEAL. THAT'S WHERE IT IS LIKE, OKAY, DO WE REALLY WANT TO EAT OUT AT McDONALD'S OR CAN WE FIND SOMETHING THAT'S A HIGHER QUALITY AT A SIMILAR PRICE? >> IT ISN'T JUST THE BURGERS. DRINKS HAVE GONE UP, TOO. PRICES FOR COCA-COLA UP 7% IN NORTH AMERICA. WENDY'S CEO FIRED UP CONTROVERSY WHEN HE TOLD INVESTORS THE HAMBURGER CHAIN WOULD TEST DYNAMIC PRICING STARTING NEXT YEAR, CHANGING PRICES AT DIFFERENT TIMES OF THE DAY. IN CALIFORNIA, CHIPOLLE, PIZZA PUT AND JACK IN THE BOX WARNED OF PRICES GOING UP BECAUSE OF $20 MINIMUM WAGE FOR THEIR WORKERS. AS FOR McDONALD'S, IT PLANS TO TEST OUT A HIGHER QUALITY AND BIGGER BURGER LATER THIS YEAR. >> SO CHRISTINE, I MEAN, WE KNOW ABOUT IT. WE HAVE BEEN TALKING ABOUT THE FAST FOOD PRICES SOARING AT THESE FAST FOOD PRICES FOR NOW. WHAT ABOUT APPLEBY'S, FOR INSTANCE? ARE THEY GOING UP? >> WE HAVE BEEN RAISING PRICES AT CHILI'S. AND PEOPLE WHO MAKE $75,000 OR LESS ARE GOING TO OLIVE GARDEN LESS BECAUSE OF THE HIGHER PRICES, SO YOU CAN SEE UP AND DOWN THE INCOME STRATA, BUT DEFINITELY PEOPLE WHO MAKE LESS MONEY ARE GOING OUT LESS. THERE IS A NEW TREND HAPPENING AT SOME OF THESE CONVENIENCE STORES, GAS STATION CONVENIENT STORES. THEY'RE OFFERING MORE HOT FOOD, MORE CHOICES BECAUSE THEY'RE GETTING THOSE FAST FOOD CUSTOMERS WHO ARE SICK AND TIRED OF RISING PRICES. YOU WILL SEE MORE VALUE THIS YEAR. YOU ARE VOTING WITH YOUR DOLLARS, YOU REALLY ARE, WHEN YOU ARE CHANGING HOW YOU BEHAVE AND HOW YOU SHOP AND McDONALD'S AND OTHER COMPANIES ARE SEEING IT. >> WHOEVER IS EXPENSING IT, IT COSTS MORE TODAY THAN IT DID LAST YEAR. >> ALL RIGHT. MR. ROKER, DO YOU WANT ONE? HERE. >> HOLD ON. HOLD ON. >> THERE WE GO. THERE WE GO. >> JARVIS GETS ONE. >> JOEY OVER THERE? OH, WHOA! JOEY WENT DOWN. ANTHONY, THERE YOU GO. ALL RIGHT. HERE WE GO. >> THERE IS ONE MORE JOHN. >> ONE MORE JOHN. >> THERE WE

Channel: TODAY

Views: 164,175

Keywords: Al Roker, Entertainment, Food, Health, Hoda Kotb, Home, International News, Money, Natalie Morales, Savannah Gutherie, Sports, Style, Today, Today Show, breaking news, concerts, domestic news, interviews, media, parents, pets, politics, shopping, weather

Id: nitIN_yxo-M

Length: 4min 0sec (240 seconds)

Published: Wed May 01 2024