McDonald's to raise prices (commodities)

[underpants]

Source: MSN

As more-expensive beef and cheese squeeze margins, Ronald & Co. will pass the costs on to customers.

If you stop by McDonald's (MCD) soon, plan to spend more for your Big Mac than you're used to. Today, McDonald's said it will raise menu prices to offset the rising cost of commodities.

McDonald's CFO Peter Benson predicts commodity prices will jump 2% to 3% in 2011. And when the costs of the ground beef and cheese rise, you can bet menu items will cost you more as the Golden Arches passes on those higher prices.

Of course, it's worth noting that McDonald's isn't exactly going out of business selling cheeseburgers at a smaller margin than a year or two ago. October sales have been strong, and MCD posted an earnings increase of 10% for the third quarter.

Though prices will rise soon, it's hard to believe McDonald's will not still continue to thrive. With numerous promotions and a changing menu, MCD has succeeded in a time when many consumers are closely watching how they spend their money. And while the prices may increase, McDonald's menu options will still remain considerably cheaper than those of most other restaurants. MCD still appears to be a stock worth sinking your teeth into.



Read more: http://articles.moneycentral.msn.com/Investing/top-stocks/blog.aspx?post=ae891e6e-0521-4e68-a7eb-965a6f69df54

[BrklynLiberal]

1. Perhaps this will inspire a COLA raise for Social Security???????

I am at a loss to understand how those in charge can say there has been no rise in the cost of living....
Absolutely nothing in my life costs the same as it did last year.

[underpants]

4. The reason I posted this - this IS a rise in a normal cost for a lot of people

Hey look as much as a "foodie" as I am (my wife really) my daughter and I had lunch at McDonald's just today.

We may go to McDonalds two times a month

There are a lot of people for whom fast food is a staple of the family diet. "Sad" or not that is how it is. This is such an incremental change that most won't notice it. The commodities speculation hits fastfood like it hit gas- and still does.

[BrklynLiberal]

6. I know...many of us who are on fixed income have no choice but to eat at McD..

It is what we can afford.

Many "commodities" are going up in price..and so will all the products that use them...

[Iowa]

20. Very interesting. What do you spend on food in a week?

Over the past 12 months we (family of three - all adults) spent $95 per week on food. That's about $4.50/day per adult. I use Quicken to track every penny, so I know this is accurate. And we eat VERY well.

All of our meat is organic. We buy quarters of beef, half hogs, and free-range chickens from a local farmer. We buy specialty cheeses from a place in Wisconsin (5 lbs. at a time) that is very high quality. We freeze fresh produce when it's in season and eat it all year round (things like peaches, butternut squash, strawberries, corn, etc.). Most of our vegetables/fruits are fresh. We make some of our own bread and the stuff we do buy is higher end. We eat almost nothing out of cans, and we eat almost no processed food except crackers, chips, and a few other things - but canned/processed stuff makes up only a tiny portion of our diet.

If I was forced to spend my $4.50 a day at McDonald's, I'd probably be sick in very short order (or dead). The only time we eat fast food is when we're on the road, which isn't very often, and I don't like to do it then. Often we pack our own sandwiches.

[Tunkamerica]

22. That's pretty good.

I find being single makes it much harder to eat cheaply and healthily. If I make more than few servings of something it goes bad, as does bread, milk, sometimes cheese. When I buy vegetables I end up having to eat them for every meal or they go to waste. And I don't like to cook as much as some people.

I end up spending 7 or 8 dollars a day by the end of the month. And if I'm going to gym regularly, I tend to spend more.

That being said I have noticed food prices going up. Buying exactly the same things and spending 5 or 10 dollars more a shopping trip.

[Iowa]

28. Yep, being single would make it much more difficult.

And I'm guessing that prices vary a lot based on location too. I'm in Iowa.

[No Elephants]

53. In urban areas, not only are prices higher overall, but many dwellings don't

have basements, attics or any other room for pantries or freezers. Also, disabled and elderly folks actually living hand to mouth on an OASDI check of $600 to $1300 per month don't have financial ability to buy in bulk, or even to stock up when something they use a lot is on sale.

Even if they did, how would they get it home? They usually don't have cars and shipping and/or delivery fees just add to costs as do cabs. For the feeblest, relatively high-priced convenience stores may be the only place they can shop.

[DesertFlower]

71. i thought we were talking about

alternatives to McDonalds.

[Iowa]

73. You're going off on a tangent that has nothing to do with this discussion.

[BrklynLiberal]

43. Ditto. Shopping for one can be more expensive.

I do not eat at McD..but know many in my situation who do.

[underpants]

23. That is impressive

$100 a week and eating well

Our costs are probably a bit higher. We do a lot of store shopping but the garden and the fridged homemade stuff cuts the cost. I can tell you this we haven't bought paper towels in well over a year ( we have bought 4 rolls since last April).

We always have food with us on the road-several long trips this year.

[Iowa]

34. We use almost no paper towels and quit buying napkins.

My wife cut up some old sheets and other fabric she had around, hemmed the edges on the sewing machine, and we have a big pile of cloth napkins... probably 100+ of them. So we use them at every meal. Rather than toss paper napkins in the trash, we toss cloth napkins in the laundry. She made them smaller than typical cloth napkins (which are huge), so they take up almost no room in the wash. The motivation to do that was more an environmental thing than cost-cutting, but it probably saves a little.

We prepare almost all of our food from scratch. Tonight we made a cheese-based/chicken/mushroom soup (a thick creamy soup we dreamed up). We had fresh sliced apples, and homemade Italian bread - hot out of the oven. We use real butter; no margarine has crossed our threshold in over 20 years. We also made an apple pie from scratch. Last night we had pot-roast, cooked with potatoes, carrots, and onions - and lots of brown gravy. So this is pretty typical fare for us.

So basically, we eat whatever we want. At this location (Iowa) we did that for $95/week over the course of the past 52 weeks. The difference between our shopping cart, and many we see, is that our shopping cart has almost no boxes, cans, or processed food... zero soda, zero beer, and no frozen processed stuff whatsoever; we buy zero convenience food. Almost everything we buy is raw, fresh, or as close to its original form as possible.

[No Elephants]

55. Many seniors and disabled don't have enough health/energy to do that kind of prop/cooking/clean

up.

You are blessed.

[Iowa]

74. And some people live in their cars and don't have kitchens...

--and some people are fed intravenously and can't swallow food.
--and some people live under bridges and have no cooking utensils.
--and some people have no arms and legs and can't shop for food.

None of this is pertinent to the discussion at hand. Do you even try to follow the flow of these discussions?

[Carni]

66. WOW! That's incredibly cheap for three people per week

We make everything from scratch -- are feeding 4 people and believe me we're spending at least double that per week on groceries (and I mean food not paper and cleaning products) we buy on sale, go to farmers markets/pick your own, utilize Costco etc. Iowa must offer some really great deals!

[Iowa]

75. Interesting...

We don't pick our own stuff or shop much at the big-box stores. We don't really pay much attention to sales. We make a menu before going to the store and shop based on that. We pretty much get whatever we want. We also don't eat as much as we used to (at least I don't). I'm retired now and don't require the quantities I used to eat. If I was a laborer or a farmer, I'm sure I'd eat twice as much. We just nixed all soda awhile back. I'm trying to limit my carb intake so I drink weak iced tea with stevia (instead of sugar). Stevia is more expensive than sugar, though. I also make fresh lemonade with real lemons (several lemons per week). When buying a quarter of beef, we get a lot of steak and other expensive cuts included - so we even eat steak fairly often - FAR more than we did when we bought meat at the store.

Sometime when we're out of state we'll walk through a store and compare prices. Maybe Iowa does have cheaper food overall. It's probably a combination of things.

[Carni]

76. We have a teenager lol so that probably doesn't help

She eats a TREMENDOUS amount of food!

[DesertFlower]

38. how about "lean cuisine" ? there always

on sale at one of the grocery stores. if not, you can get them in walmart. right now albertson's is charging $5.00 for 3.

[No Elephants]

57. Please see Reply 53.

[laundry_queen]

65. yeah, those are pretty cheap here too.

I'm lucky enough to have a large freezer and I buy no name frozen meals for $.97 each. They had some michelina's on sale for $.88 each this week. That's not what all my meals consist of, but they are a good quick cheap lunch. I can see how that wouldn't work well if you didn't have a freezer, though.

[DesertFlower]

70. i guess it depends on the size of your

family and your refrigerator's freezer. a few weeks ago we had 40 lean cuisine in the refrigerator's freezer plus quite a few other things.

[ejpoeta]

56. When I consider eating out, I always consider the cost. Like we

ordered a pizza and wings on friday. It costs $35 with the delivery charges. That is how much I generally spend at Aldi's when I go there. I could buy the stuff to make pizza and have some left over. I don't usually buy pizza. When I consider buying a sub at subway I consider I could buy enough lunchmeat to feed me for a week. I understand how much it costs to buy groceries and good food even. If you are going to eat out McDOnalds is cheaper.... but it always makes me sick.

[countrydad58]

33. Took the words out of my mouth.

I am on SSDI & things our real tight! Even though I just started posting. I have been reading DU since the selectinaugaration of Bush. I was watching the coup-inaugaration on T.V. When someone held up a sign democraticunderground.com. I have been hooked since then! As a long time reader, I notice some on here buy into the Govt. Meme that prices have gone down. Yes Gas is not $4.00 a Gallon. Now around $3.06 in my neck of the woods & rising again, & food prices are higher than last year too!

[BrklynLiberal]

44. Absolutely. Gas here is $3.23 per gallon...and going up.

NOTHING is cheaper. It is more expensive to live this year than it was last year...food, clothes, utilities, insurance, everything.

[ejpoeta]

58. i remember when gas got to $3 and people started crying uncle.

now it's just $3. I am wondering at what point we will see people start changing their habits again. And of course the price of everything will have to go up because of gas prices going up.

[countrydad58]

63. Yes

IMHO The big reason why the economy collapsed was the high energy costs. The added finacial stress on homeowners helped trigger the foreclosure mess!

[Odin2005]

42. It's because the price of cosumerist garbage is dropping, even though the cost of necessities...

are going up, so "technically" there is DEFLATION, except for all the goods that really matter, which are inflating.

[No Elephants]

59. It's also because there are many cost of living indices and the one used for OASDI includes prices

of things people who have no income other than OASDI and live at cat food level subsistene rarely, if ever, spend on, like airline tickets, cars, gasoline, clothing (suitable for a working person), etc. AFAIK, no one has a cost of living index that reflects how really, really poor people live.

Also, if you live in Boston, anhattan, etc., you are really SOL on shelter, fuel and the like, yet that may be the only place you can be near relatives (who, if you are elderly and/or disabled and poor, are your support system for things like getting to medical appointments, or helping when you are newly home from surgery.

[Odin2005]

64. Exactly!

[No Elephants]

52. Not last year. Since 2007!

During 2009, Congress (or someone) looked at cost of living (COL) for 2008 and somehow determined COL in 2008 had not increased over COL in 2007. So, around the last calender quarter of 2009, Congress (or someone) announced OASDI would not increase in 2010.

During 2010, Congress (or someone) looked at cost of living (COL) for 2009 and somehow determined COL in 2009 had not increased over COL in 2008, either. So, around the last calender quarter of 2010, Congress (or someone) announced OASDI would not increase in 2011, either.

So, until at least January 2012, OSADI checks will be based on cost of living in 2007.

[whopis01]

68. You want to tax soft drinks for social security????

;-)

[Newsjock]

2. There is no inflation, and stop saying that there is

:sarcasm: I think.

[ejpoeta]

3. i avoid mcdonalds, so it doesn't really matter much to me. my concern

is the cost of everything i DO buy going up.

[awoke_in_2003]

29. do you not buy beef and cheese? nt

[ejpoeta]

54. apparently you didn't read what i said.

i don't go to mcdonalds, so their raising their prices doesn't bother me. but the prices of everything is going up and that does affect me.

[PSzymeczek]

35. Just go there

for the occasional sausage and egg biscuit or order of fries. Once every couple of months.

[DesertFlower]

39. i agree. nt

[celestia671]

5. Well..

the chemicals they use to preserve their food ain't cheap, ya know!

[Uben]

7. They'll be raising wages, too.....

...in about a hundred years!

[activa8tr]

10. Not if the Republicans are still in control of Congress then! LOL n/t

[CoffeeCat]

8. Happy Meals here are...

...$1.79 on Wednesdays. Like everyone else in my suburb, we went there after soccer and got cheap meals
for our kids and played in the Playplace.

We went on a health kick and began eating organic, foods without HFCS and other healthier choices. We'd
still go to McDonald's until my children began complaining of stomach aches after eating there. The healthier
we ate, the more they noticed the deleterious effects of eating at McDonald's.

I'm proud (and a bit ashamed of myself as a parent) to report that my kids requested that we not take them
to eat at McDonald's anymore. We haven't been there for at least six months.

A healthy body knows when you're putting junk into it.

So sad that this poison is so cheap and popular.

[cowcommander]

18. Same here, I used to eat Mcdonalds until I started getting sick from it

I'll admit, I love the taste, but whatever they put in it is some nasty, unhealthy shit that even my body refuses to take in! Fortunately anyone can just make their own Big Mac burgers. :)

[jmowreader]

24. It's called "special sauce" not "secret sauce"

And all it is, is Thousand Island dressing. They sell it at grocery stores, and putting on hamburgers is one of the few acceptable uses for it.

[PSzymeczek]

37. Secret sauce

is Jack in the Box, which I haven't eaten at since 1974, since my first husband worked there, and came home every night smelling of their tacos.

[HomerRamone]

19. Happy Meals are here again, Oh Happy Meals are here again!

That's what I thought your post would be ~(_8^(|)

[DeSwiss]

32. Nuff said.

http://www.stinque.com/2010/10/22/i-can-has-petrified-cheezburger/">I Can Has Petrified Cheezburger?
http://www.stinque.com/2010/10/22/i-can-has-petrified-cheezburger/">

[Skink]

61. A lot of food would probably do that.

call the doctor. It's been more than 4 hours.

[activa8tr]

9. A PERSONAL CONFESSION: I buy burgers at McD's

once in a while.

THEY ALREADY DID RAISE PRICES THIS YEAR! I know, because I used to by their cheap $1. burger and it's now $1,19 !!!!

that's a 19% raise in prices.

I don't do the fries, I don't do the drinks, I buy one burger once every other month or so, and I go in there with $1.06 sometimes in loose chanage. Now I have to have 1.25 in change for the same thing I used to buy last winter for $1.06, tax included.

[Moonbat2]

30. REALLY ???

THATS QUITE A YARN :9

[Taverner]

40. The burger is the healthiest thing on their menu

I try to go to IN n OUt simply because they have better burgers, but I love a Big Mac

[underpants]

50. Egg McMuffin - fantastic after a long run

I have even seen it mentioned in Runner's World of all places.

I get an Egg McMuffin about twice a month but that will probably increase as I am about to start actually training for a marathon in March.

BTW- a McMuffin and chocolate milk are considered fantastic "recovery food" after a run of more than say 8 miles.

[ixion]

11. spend your money on REAL food instead

you'll be glad you did. ;)

[Monique1]

12. I must admit I ate a cheeseburger there (I think)

wanted to buy a bag of ice on my way home and decided to grab a cheeseburger there also. I didn't taste the burger but I did taste the mustard, catsup, pickles and onions and some cheese but where was the burger? Their buns are too think for the burger also. Not the same McDonald's I remember when younger. This will be the last time. My friend makes great burgers - so that will be his job from now on.

[eilen]

13. Sometimes you just want a burger

it's weird. I hardly ever buy fast food burgers for myself to eat (my teenager son still requests though) but every once in a while I have the urge for one of their cheeseburgers-- not a Big Mac -- just a cheeseburger.

I could make one, I know that. But it isn't the same. So I reserve indulging in this urge for when I am traveling and there aren't many alternatives available.

I always regret it -- the aftertaste.

[Hawaii Hiker]

15. I still like McDonalds burgers and fries

When i go to McDonalds, i eat their hamburger with the ketchup, musturd, onions, etc. but if i go to a place like Friday's, etc. i only get lettuce on the burger, or sometimes I've eaten them plain...McDonalds is the only place i eat those extras on the burger, lol..

I also eat pizza plain (cheese only), and pasta with just marinara sauce, so I'm not an adventorous eater, lol..

[Chan790]

31. :D

We're opposites...I detest lettuce. I refuse to eat it. Ever.

I'm also a vegetarian so I'm not eating McD or any burger but Boca. Still...no lettuce for me. I love me some onions, pickles, ketchup and mustard...it's what I get on my grilled cheese.

[stray cat]

17. Some people in inner cities do not have that luxury accept for the 7-11 or gas station

[ixion]

27. I've lived in inner cities, and where there is a McDonald's

there is a grocery store or bodega at the least.

[iamthebandfanman]

14. id imagine this will hurt business..

i mean lets not kid ourselves, people go to mcdonalds because its a lot of food for a pretty cheap price...
change the cheap price part and youve got every other food chain resturant... lol

[jmowreader]

25. It's still pretty cheap

We're looking at a five-percent increase--fifteen cents on a three-dollar hamburger.

[stray cat]

16. Makes sense

[truthisfreedom]

21. Their fish sandwich is already too expensive, and that's the only thing I've eaten at McDonald's in

the past few years.

[Arugula Latte]

26. Too bad. The price of obesity, diabetes, heart disease and strokes just keep rising.

:sarcasm:

[skoalyman]

36. Id rather eat at home we eat at mac Death's once or twice

a year.

[Odin2005]

41. This is REALLY bad for a lot of poor people.

No inflation my ass!

[mitchum]

45. The prices of cardboard and sawdust are going up???!!!

[lib2DaBone]

46. Screw the Seniors and Elderly.. because they are the least able to fight back....

.. politicians in Washington crawl on their belly like worms....

How can you screw people who have paid into the system their whole life?

[lib2DaBone]

47. MacDonald's can raise prices all they want... all I buy there is coffee...

..and if they raise that too much.. I'll quit buying coffee.

[MilesColtrane]

48. McDonald's "beef" prices going up?

I guess the "cattle" feed is getting more expensive.

We all know what steers eat, but I'm sure the raw material for a Quarter Pounder™ comes from an animal that is smaller and has more legs.

[Kablooie]

49. So everyone's income goes down and the price of inexpensive items goes up.

[No Elephants]

51. McDonald's food costs rose, but food costs for OASDI recipients are at 2007 levels. Interesting.

If you find bullshit that hurts the elderly and disabled interesting.

[slackmaster]

60. I don't buy their stuff at the present prices. I'm even less likely to buy it at higher prices.

Maybe more people will buy food at supermarkets and make their own burgers at home.

[clixtox]

62. I only use the bathroom @ Mickey D's...

The "food" served there has been engineered and manufactured to be seductive, as irresistible, as chemically possible.

The flavors are created in laboratories in New Jersey and the "beef" is derived from who-knows-where.

The bathrooms, on the other hand are universally, in my experience, relatively clean and well stocked with paper and soap.

I see Mc Ds in the same way as Walmart, not worthy of my custom due to their exploitive business model.

[tomhayes]

67. McDonald cost less than it did in 1986

When I was in high school the Big Macs cost $2.19.

Now you can get a Big Mac for 99 cents many days.

A double cheeseburger is the same if you have them add the sacue.

A McDouble is $1 every day of the week.

Prices SHOULD go up at McDonalds.

[countrydad58]

72. No your wrong.

I was 28 years old in 1986 a hamburg at MCDs was .39-.59 Big Mac was .79-.99 I dont know where you lived,but in upstate NY. thats what the prices were.Also ave. U.S price according to Food timeline for Big Mac is $2.37 Gas too was under a 1.00. Min wage in 24 yrs. has only risen only about $3.00-$3.50 per hour.

[ProudDad]

69. They'd have to triple their prices

and hand over the 2/3 increase to provide Enhanced and Improved Medicare for All...

In order to properly pay for the damage their "food" does to the poor people who have access to nothing BUT "fast food"...

http://en.wikipedia.org/wiki/Super_Size_Me

[activa8tr]

77. Some of us need to just CHILL OUT with this little rap tune video

http://www.youtube.com/watch?v=Q5H7IYPw40Q

I'll go ahead and include the lyrics on here


Sittin' on the couch with the morning post
With a cold cup of coffee and some boring toast
Thinkin' I'm-a change it up, yeah that's always fun
What you reckon, Remz? A McDonald's run

So we hit the couch cushions, need some dollars, friend
Yo, I found a five. Man, that's Canadian.
How 'bout a loonie? A twonie? A spoon or The Goonies?
Oh, it's 10:25. Dude, you gotta move, G.

Got the cash, got the car, got the pedal to the floor
Speed limit's 25, but I'm doing 34
Going drive-thru style, man it's fast express
You can call it trans fat, I call it happiness

Roll up to the teller fella with a minute to spare
Frenchy with a headset, "can I take your order?"
A McGriddle with a little sweet and sour there, son
A McMuffin, then be stuffin' muffins up in my trunk

Then a tray or two of hotcakes, man I can't decide, uh...
All's I know is hit them things with Aunt Jemimah
How 'bout an egg fajita for some Texas flavor
No drama but my momma wants a breakfast bagel

Don't forget my #4, or there'll be hell to spend
And I want them eggs poached like an elephant
Frenchy back on the line, "is that all your order?"
No it ain't, fool, I want a Coca-Cola!

Get my cup of Coke and I'm-a start a riot
Cuz on the cup lid, dude depressed the "diet"
Check his shirt tag, and I catch the name
Brian, I ain't tryin' to drink aspartame

Sittin' on the couch, 'bout an hour later
Pickin' at a pouch of some Now n' Laters
Hardly starving, man, but I find a hunch
Start the car up fast because it's time for lunch

It just takes two bucks and I get what I need
Two beef patties, special sauce, lettuce, cheese
"Supersize Me" said he's had enough of it
But how is it bad for my heart if I'm in love with it?

If you never had McDonald's, heck, well dude you should
It's a party, like a Hardee's, except the food is good
Just don't get a large #2, I plead with you friend
Cuz it'll be a large #2 when you see it again

Enter the store, first you holla, then you
Pick a couple items off the dollar menu
Four hot McNuggets, dessert with custard
Mix the sweet n' sour with a squirt of mustard.

A Big Mac attack, you can max the lettuce
Paying ain't a pain, they take cash or credit
Want a water? You can pay up there for spring
Or get the free Grimace cup--how embarassing

They say, "you're playing with a cardiac arrest, my boy"
Only thing bad for my heart's when they forget my toy
Now I'm-a have a milkshake, but before you rant
It's made of shamrocks--now that's a plant

People say it's bad, but I don't believe them
McDonald's is peace--just ask Tom Friedman
Momma catch me with a 'zine, and she's screaming "stop!
Don't you worry, Mom, it's just my man Ray Kroc

Thanks to dubzattic for the beat!
Category:
Comedy

[Incitatus]

78. That's okay. I rarely have the craving to eat shit. nt