No wonder Americans are fed up with fast food – a new report shows just how much popular combo meals have risen in price.
Official figures show annual inflation for the fast food sector is 4.8 percent, but that only tells part of the story after years of increases, a report by USA today shows.
Prices for a typical combination meal at the five largest hamburger chains – McDonald’s, Burger King, Wendy’s, Carls Jr and Five Guys – have risen by as much as 120 percent in ten years.
That’s more than three times the official inflation rate; according to the U.S. Bureau of Labor Statistics, the cost of goods has increased by only 31 percent since 2014.
It’s now surprising that four in five Americans think fast food is a “luxury” because of how expensive it is now, a survey by Credit boom showed.
And there is no doubt that Americans voted with their wallets. In the first three months of 2024, the number of visitors to fast food chains fell 3.5 percent from a year ago, according to data from Revenue Management Solutions.
How prices for meals at the five largest fast food restaurants have increased over the past decade
In real terms, this means millions of Americans are skipping the drive-thru every week – with chains themselves admitting that higher prices have put off burger fans.
At Carl’s Jr, a Famous Star combination has risen from $5.29 to $11.68 – more than doubling since 2014.
In dollar terms, Five Guys – the most expensive overall – went up more than $7 to $20.32.
McDonald’s – the example of price increases, perhaps because it is the largest – saw prices rise the least.
But they were still up 65 percent and a Big Mac meal still costs $15 in some areas.
Researchers examined the five chains in 18 areas in the US. They asked about the pre-tax price for each of the chain’s signature combo meals in a medium size format.
So for McDonald’s it was a combo meal around the Big Mac, for Burger King the Whopper, for Wendy’s a Dave’s Single, Carl’s Jr. the Famous Star and a cheeseburger for Five Guys.
The 2014 prices come from menus from that year on the Fast Food Menu Prices website.
The research not only shows how much prices have risen in ten years, but also shows how prices vary across the country.
At McDonald’s, Houston, Texas was the cheapest for a Big Mac combo at $7.89. In Seattle it was almost $15.
Five Guys was also pricey in Seattle, but most expensive in Chicago, Illinois. There, a cheeseburger, fries and a drink cost $23.65. It was cheapest in nearby Indianapolis, Indiana. In fact, overall, Five Guys was the most expensive.
There is hope that the price increases are now over.
McDonald’s had lower-than-expected sales in the first three months of the year, which the company said was due to lower-income Americans being deterred by higher prices.
That’s why CEO Chris Kempczinski promised better value for the rest of the year, saying the chain must be “laser-focused on affordability.”
Wendy’s $3 breakfast deal includes an English muffin and potatoes.
McDonald’s CEO Chris Kempczinski said in an earnings call earlier in May: “I think it’s important to recognize that all income cohorts are looking for value.”
McDonald’s is planning a $5 meal bundle starting June 25. Customers will get a total of four items: a McDouble or McChicken sandwich, small fries, small soda and four McNuggets.
Burger King has a similar $5 deal, while Wendy’s has launched a $3 breakfast meal – as a fast food price war appears to be escalating.
Neil Saunders, director of consultancy GlobalData Retail, told DailyMail.com this year that consumers are getting fed up with price increases.
“The problem is that places like McDonald’s were once cheap treats but are now becoming expensive luxuries. And customers are fed up with constant price increases,” he said.