(Bloomberg) -- Lawmakers including Senator Elizabeth Warren are asking McDonald’s Corp. to explain how it decides what to charge, arguing that the burger chain’s price hikes have outpaced inflation.
“While McDonald’s is not the only fast food restaurant that has increased prices significantly in recent years, its dominant market position as the largest fast food chain in the United States has an outsize impact on American consumers,” Warren along with Senators Bob Casey and Ron Wyden, wrote in a letter to the chain’s CEO, Chris Kempczinski.
In a statement, McDonald’s said that it offers affordable meals, including a $5 bundle launched earlier this year and deals available on its app. Franchisees, who independently own and operate more than 95% of the chain’s US locations, set their own prices.
“This letter demonstrates a lack of understanding of our franchise business model and contains contortions of facts and many inaccuracies,” McDonald’s said. “We will respond to the letter, and in the meantime, continue to show up for our customers and our communities.”
In May, McDonald’s US president Joe Erlinger said average prices at the chain are up 40% in the past five years, in line with the increase in the cost of running restaurants. The chain has sought to dispel perceptions, including complaints on social media, that it’s gotten too expensive with meal bundles and other discounts.
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