McDonald’s Thrives While Wendy’s and Burger King Suffers From Inflation

Inflation sees the big three burger chains show varying progress
Inflation sees the big three burger chains show varying progress

The cost of living is rising with inflation on the rise, prices are affecting people and businesses alike – with some chains seeing their clientele drop. The US Bureau Labor Statistics reports that this latest increase in pricing reflects what was seen back when it reached heights last seen 40 years ago.

Forbes has seen incredible increases in the past 12 months for electricity (up 12%), utility gas services (30.2%) and meats, poultry, fish, and eggs which are all up 14%. 

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The burger industry has been slowing down for a while now and it’s beginning to show in the numbers. The nationwide trend of people eating at home instead of restaurants is only increasing this problem, leaving many companies with less revenue than they had before.

However, data company Placer.ai reports that McDonald’s has done better than other chains, with visits up in April and May by 6.3% and 3.8%.

The number of people visiting McDonald’s has increased over the last half-year, and it is believed that this success can be attributed in part to their new celebrity collaboration as well as an improved loyalty program.

The current economic climate is tough on businesses, and it’s been hurting those in the fast-food industry especially. When you look at Wendy’s or Burger King – their sales have lagged far behind what they were expected to be doing before.

Wendy’s and Burger King both saw a decline in traffic last month with 12.1% and 12.4% drops. However, their yearly visits were up.

It is speculated that the price increase at Wendy’s last year may have had something to do with its current endeavors. This company confirmed plans for an additional 5% hike in 2022.!

“We did talk about taking 5%-plus pricing,” said Todd Penegor, president and CEO of Wendy’s. “We’ve got to find that point where we can balance passing on some price but still being of relative value to the consumer.”

Burger King’s largest franchisee, Carrols Restaurant Group is also feeling the pressure.

“Even if inflation moderates in the back half of this year, we’re likely to feel its impact on our cost structure for some time,” said CEO Paolo Pena. “To deal with it, we are going to need to adapt and evolve as never before. And to do that, we are going to need to look at all aspects of our operations with fresh eyes.”

Meanwhile, Placer.ai reports regional burger chains have seen growth in visits this year including In-N-Out Burger, Whataburger , Sonic Drive -In and White Castle.

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Opinions expressed by The Chicago Journal contributors are their own.

Allen Braun

Allen is a freelance writer and environmentalist whose main topic is all about nature, health, lifestyle, music and travel. He’s an outspoken person and joins groups and organizations that protects the animal rights and advocate of nature.

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