McDonald’s puts up price of cheeseburger for first time in 14 yearson July 27, 2022 at 9:20 am

McDonald’s has put up the price of its cheeseburger for the first time in more than 14 years, due to growing cost pressures.

The fast food chain said its UK restaurants would be adding between 10p and 20p to a number of items.

The price of a cheeseburger has increased from 99p to £1.19.

Companies are facing increased costs for things like fuel, wages and ingredients, with prices rising at their fastest rate for 40 years.

In an email to customers, McDonald’s UK and Ireland chief executive Alistair Macrow said the company was facing “tough choices” about its prices.

“We understand that any price increases are not good news, but we have delayed and minimised these changes for as long as we could,” he said, adding that some prices were unaffected and some would continue to vary across the company’s restaurants.

McDonald’s has more than 36,000 restaurants in more than 100 countries.

On Tuesday, it said it was considering whether to add more discounted menu options because the increased cost of living, particularly in Europe, was leading to some lower-income customers buying cheaper items and fewer big combination meals.

It came as the company reported a jump in global sales of 9.7% for the three months to the end of June, compared with the same period last year.

The war in Ukraine has pushed up the cost of fuel and food, with UK inflation – the rate at which prices rise – hitting 9.4% in June, the highest level for more than 40 years.

Some firms are also having to increase wages to attract and retain staff, with job vacancies at near record highs. However, pay increases are not keeping up with the growing cost of living.

Companies around the world are facing cost pressures, with other countries also affected by high inflation.

KitKat maker Nestle, Marmite maker Unilever and bakery chain Greggs are among those which have already increased prices this year.