McDonald's Price Increase May Be on the Way

Despite government findings that inflation is almost nil, the price of wheat is up, as is the cost of corn and soybeans. Consequently, beef and pork prices are also rising. How does a worldwide chain such as McDonald's deal with higher supply prices? A price increase may be on the way.

This was one caution voiced by McDonald's Chief Financial Officer Pete Bensen as part of the company's fiscal fourth quarter financial report released yesterday. The report was mostly favorable, with quarterly earnings at 2.1% despite the impact of foul weather in Europe and the U.S. in December.