the Voice of
The Communist League of Revolutionary Workers–Internationalist
“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx
the Voice of
The Communist League of Revolutionary Workers–Internationalist
“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx
May 26, 2025
Today, dining at a fast-food restaurant like McDonald’s has become a splurge. More than a year ago, a Big Mac meal deal priced at $18 made the news. Sure, the McDonald’s which sold this extravagant hamburger combo is located off Interstate 95 in Darien, one of the wealthiest towns in upscale Fairfield County, Connecticut. Its well-off customers can well afford this exorbitant price.
But in the large metropolitan area of Los Angeles, a medium Big Mac meal deal starts at $12.50. Therefore, the total can easily reach $30 to $40 for two people. This is hardly affordable for working class families.
McDonald’s claims that the rising costs of food ingredients and wages justify these high prices. This is sheer nonsense.
According to a study conducted by FinanceBuzz, a personal finance service firm, McDonald’s menu prices doubled (100% increase) between 2014 and 2024. This increase outpaced the overall inflation rate during the same period (31%). Thus, McDonald’s raised its prices more than three times the inflation rate, well above the ingredient and labor costs. During the same period, Popeyes raised its prices by 86% and Taco Bell by 81%.
You may think that, OK, you can move to a less lavish menu item. For example, the McChicken sandwich, which is McDonald’s staple offering, looks more affordable. This deal was $1 in 2014, but now costs $3 at some locations. That’s a massive price increase of nearly 200% in a single decade.
McDonald’s is very profitable, consistently reporting some of the highest profit margins in the restaurant industry. The company’s current net profit margin (after taxes) is approximately 32%, indicating that nearly a third of its revenue is retained as profit after covering all expenses, which include food ingredients and labor costs.
McDonald’s reaches these profit levels while some of its burger patty sizes, like its “classic,” 1.6 ounce, are smaller than those of its competitors, Burger King and Wendy’s, two ounces. This profit margin is so sky-high that it exceeds even that of companies like Tesla, Apple, Google, and Netflix. No wonder why McDonald’s is such a darling on Wall Street.