Asia Bizz: McDonald’s, the largest fast food chain in the world, is considering to raise the prices of its meals in China. The increased prices shall take effect from the third or even fourth quarter of this fiscal year, and the figures shall go up by 50-60% on the current prices. The sole reason for the increase is due to the ongoing inflation in China and also around the world.
The inflation rate in China has been around 4.9%, which is quite favourable for many products, plus economists state the increased prices shall be lower than what the inflationary figures demand. Currently, McDonald’s has 1300 outlets in China and it is considering to increase this figure to 2000 in the coming fiscal year.
The share prices of McDonald’s has increased by 20% in the past year, showing steady increase in the company’s performance. Keeping inflation in mind, most of the eatables these days are getting expensive and this is where major issues occur.