Amid talk that fast food prices have risen precipitously, Finance Buzz conducted a study to determine just how significantly prices have increased along with inflation.
To obtain the data, Finance Buzz compiled price points for the menus of a dozen separate fast-food chains from 2014 until 2024. It was then calculated how much the prices had increased in that period, compared to the inflation rate during the same timeframe.
The results determined that rising fast food prices have indeed outpaced inflation, with the restaurants in the study having raised prices anywhere from 39 to 100 percent over the decade. Since 2014, the cost of goods has only risen by 31 percent.
McDonald’s was found to be the chain which saw prices spike most significantly. The company has actually doubled the prices of some popular menu items since 2014, marking an increase of 100 percent. Some of the more common items have seen even higher increases.
McDouble and McChicken sandwiches, as well as medium-sized French fries, have seen increases approaching 200 percent. McDoubles now cost $3.19 on average, compared to $1.19 in 2014; and medium fries now cost $3.79 compared to a measly $1.59 a decade ago. At many locations, the McChicken sandwich—formerly a $1 staple on the chain’s value menu—has risen to $3.
Other significant price hikes on the McDonald’s menu include the Quarter Pounder with Cheese meal and the chain’s Chicken McNugget combo; both of which come with fries and a drink. While they cost just $5.39 and $5.99, respectively, in 2014; the meals now run $11.99 and $10.99 on average.
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Popeyes came in just behind McDonald’s, with average price increases of 86 percent since 2014. The fried chicken chain was followed by Taco Bell (81 percent) and Chipotle (75 percent).
Still, some items at those restaurants have increased far more than the average. Back in 2014, you could get a Beefy 5-Layer Burrito for just $1.59 at Taco Bell. In 2024, that price has risen 132 percent to $3.69. Likewise, the price of a Cheesy Gordita Crunch has doubled from $2.49 to $4.99.
At Popeye’s, a four-piece chicken dinner that cost $6.99 in 2014 now totals $13.49, an astonishing increase of 97 percent.
Shubhranshu Singh, an associate professor of marketing at Johns Hopkins University, explained why fast food chains are seeing such a steep increase in prices. “Food prices are outpacing inflation. Wage rate is also rising faster than inflation. In other words, the cost of preparing and serving fast food is rising faster than the inflation rate.”
But Daniel Roccato, a professor of finance at the University of San Diego, says that “the worst is behind” us in terms of fast food price increases.
“Consumers have reached a tipping point,” he explained. “Fast-food operators have increased prices faster than the overall rate of inflation and that is especially hard on their core consumers. We won’t see prices drop, but we can expect a pause,” Roccato surmised.
The trend seems to be reversing, at least slightly. McDonald’s recently pledged to be more affordable in 2024 after the chain’s $18 Big Mac meal at a Connecticut restaurant caused an uproar after going viral.