Bridger PenningtonFund Launch & Investment Expert

McDonald's Price Increase | Bridger Pennington

1 Jan 2024 · 0 min

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In this brief commentary, Bridger Pennington argues that McDonald's can raise its prices because consumer demand persists, and in a competitive, capitalistic fast‑food market, higher prices are justified. He suggests that if anyone can offer cheaper alternatives, they should start a competing brand with a different burger. Pennington contrasts this situation with the oil industry, noting that OPEC can manipulate prices through monopoly power, making oil a distinct case of price gouging. Overall, he views the McDonald's price increase as a non‑issue given market competition, while highlighting the difference between competitive food markets and monopolistic commodity markets.

But apparently, people still wanted to go to McDonald's. So hence, they should be charging higher prices. This is a capitalistic society. And by the way, if you or me can do it for cheaper, let's go start a competing brand, have a different type of burger. Oil, I think, is a different category. You have OPEC that does price gouging and price fixing. I believe oil can be more manipulated and is more of a monopoly. Someone like McDonald's, though, is a very competitive marketplace. So I don't think it's a big problem.