In response to claims that McDonald's has significantly raised its prices, Joe Erlinger, the president of McDonald's USA, has addressed the issue in an open letter. Erlinger clarified that the average price of McDonald's menu items has increased by around 40% since 2019, refuting claims on social media that the company had raised prices by over 100%.

Erlinger acknowledged that consumers are making tough decisions about their spending, and emphasized the importance of providing value and affordability. He revealed that the average price of a Big Mac meal has risen to $9.29, a 27% increase from $7.29 in 2019. Additionally, the price of a 10-piece McNuggets meal has gone up by 28%, while medium french fries now cost 44% more.

The price hikes are attributed to increased input costs, such as crew salaries and the cost of goods. Erlinger highlighted the responsibility of McDonald's in ensuring that accurate information is available to the public. He also mentioned that consumer prices have increased by 3.4% over the past year, according to the Bureau of Labor Statistics.

As a response to the rising costs and to provide greater value to customers, McDonald's will be introducing a $5 value meal starting from June 25. This month-long promotion will include options such as a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink. Analysts from BTIG believe that this deal is aimed at improving the perception of value and refocusing the narrative around recent price increases at McDonald's.

While the promotion is seen as an opportunity to reinstate McDonald's as a value leader in the industry, there are concerns about its sustainability. An independent advocacy group of McDonald's franchisees has expressed the need for greater financial support from the company to make the discounted offering viable in the long term.

In its first-quarter earnings report, McDonald's reported same-store sales below expectations, indicating the impact of consumer pullbacks across the restaurant industry. The $5 value meal promotion is viewed not only as a profit driver but also as a strategy to boost sales and regain customer trust.

As consumers continue to grapple with increased prices, McDonald's is making efforts to strike a balance between maintaining profitability and offering affordable options. The $5 value meal deal will provide customers with a budget-friendly choice while McDonald's works towards solidifying its position as a leader in the fast-food industry.

(Note: This news article is a summary based on the provided information and does not include any external sources or opinions.