Earlier quoted context omitted.
> likely to send business to McDonalds Wendy’s is doing this in order to compete with McDonalds, which has been pushing up prices much faster than inflation for several years in a row… and McDonalds has publicly claimed it’s not hurting their business. https://www.businessinsider.com/mcdonalds-price-hikes-puttin...
McDonalds has every incentive to insist to its shareholders that price increases do not impact business performance. any onlooker --even Wendy herself-- who thinks otherwise is deluded. McDonalds is routinely lambasted on social media and in memes for its recently gilded pricing. the quality just is not there. I suspect actual sales are flat, or in decline as a response to the price increase. The alternative to scald…
It is entirely possible for the number of hamburgers sold to go down while the price goes us, and for MCD revenues to stay even or earn more money. That might lead to a hollowing out of their customer base, and could lead to eventual decline, but there’s no guarantee of that.
McDonalds also has a lot of incentives to try to escape the rock-bottom commodity pricing, if it can, and regardless of quality, some companies do charge “market rates”. Apple and Starbucks come to mind. Starbucks is a good example of a company that took a cheap commodity product and pushed the price up considerably without suffering decline; the primary consequences were mountains of profit.