The McBad News for McDonald's keeps on rolling in: According to Ad Age, McDonald's prices are rising, pushing the chain's "bargain-seeking customers" away. The restaurant eliminated their dollar menu last year and the menu is apparently "quietly getting more expensive." McDonald's admits that its prices are up nearly three percent compared to last year. Factor in the rising costs of meat, and prices are set to increase even more in the future.
Recently, McDonald's has also failed to offer "enough discounts and deals" to attract more diners. Many customers now feel that the fast food restaurant's prices are similar to that of higher end fast casual restaurants. Restaurants like Chili's are now offering combo meals like a double cheeseburger with soup or salad for $8. At some McDonald's locations, a Double Quarter Pounder with cheese, a drink, and fries hits the $7.50 mark. For that price, customers might prefer casual sit-down restaurant.
The chain is in its worst sales slump in a decade, and analysts predict it's not going to get any better anytime soon. According to analyst estimations, McDonald's revenue fell nearly two percent to to $7.2 billion in the third quarter. The chain's net income — which was also affected by the recent expired meat scandal in China — slid 11 percent to $1.36 billion.
McDonald's isn't just facing hardships at home but at locations abroad as well. Due in part to tensions between Russia and America over sanctions regarding Ukraine, the burger chain is in the midst of a massive battle with Russia where it has nearly 400 outlets. Currently, the Russian higher courts have shut down nine locations and another 200 are undergoing random inspections. At home, McDonald's has been attempting to boost its sales through strange new menu items like chorizo-less chorizo burritos and bringing back its famous McRib sandwiches but has yet to see much success.