McDonald's customers shrug off higher menu prices as revenue jumps
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Sales at McDonald's US restaurants open at least 13 months jumped 3.7% in the second quarter, the company said Tuesday. That growth was driven by higher menu prices and "value offerings" on its regular menu and through its app, according to McDonald's. Restaurant chains have been raising menu prices as inflation soars, both because their own costs are rising and because they see that customers are not shying away from paying more, at least not yet. To take the edge off higher prices, restaurants have been highlighting value — anything from more food for your buck to an experience that makes the price feel worth it. Read MoreMcDonald's has been raising its menu prices. McDonald's has also been offering some freebies to customers, provided they are part of the brand's loyalty program and order through the McDonald's app. Earlier this month, for example, the chain gave away free fries to those customers in honor of "National French Fry Day." Late last year, the brand partnered with Mariah Carey to give away freebies to app users. And McDonald's has had success with its celebrity meals platform, which allows customers to order favorite items of musicians and other stars they admire. Customers may also feel like they're getting a better value at a fast-food joint because they're spending so much more at the supermarket. Grocery prices jumped 12.2% in the year ending in June, not adjusted for seasonal swings, according to data released by the Bureau of Labor Statistics earlier this month. In that period, menu prices grew a relatively modest 7.7%. Consumers may eventually pull back spending, however, especially as more people feel like the US is in a recession. McDonald's CEO Chris Kempczinski nodded to the situation in a statement Tuesday. "The operating environment across the competitive landscape remains challenging," he said. "We are planning for a wide range of scenarios." Click Here To Get Funded!