COMP News – Even America’s golden arches are feeling the results of inflation. Prolonged supply chain issues have lead McDonald’s to raise its prices at the start of the year.
“Portion sizes are shrinking. Prices are going up. It’s just insane what’s happening in the restaurant industry,” Ed Rensi, former McDonald’s CEO, told “Cavuto: Coast to Coast” Friday.
The restaurant chain is not expecting these problems to go away anytime soon.
In the U.S., the Golden Arches burger chain reported that same-store sales – or restaurants open at least a year – rose 7.5% from October to December [2021]. For the full year, same-store sales notched 13.8%, which marked “the highest U.S. annual comparable sales ever reported,” McDonald’s announced in its earnings release back in January.
The former CEO hinted that the trucking industry, which is currently experiencing an acute labor shortage, is the most prominent factor influencing rising prices.
“The biggest single problem we’ve got is the…truckers shortage and a disruption of imports coming into this country,” he added. “This truckers’ situation is enormous and is having a big impact.”
For now, the prices for golden fries at Mcdonald’s will be a little higher due.
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