McDonald's (MCD) will increase prices on some menu items in the U.S. this year in response to rising commodity prices, which are boosting food costs, Chicago Breaking Business reported, citing remarks the company made on its earnings conference call Monday.
The fast-food chain said it will raise prices on some items to cover ingredient costs that in some cases will rise as much as 2.5% this year, the publication said, citing McDonald's Chief Financial Officer Pete Bensen. The company held off on boosting prices last year for fear of losing customers who were already being affected by rising prices at grocery stores, the publication said, citing McDonald's Chief Operating Officer Don Thompson.
The company made the announcement as part of its fourth-quarter 2010 earnings release. McDonald's increased its net income 2.1% from a year earlier to $1.24 billion as its U.S. same-store sales rose 4.4% on items such as its McRib and beverages such as its Caramel Mocha. Revenue rose 4% to $6.21 billion.
McDonald's also said Monday that global same-store sales this month are up as much as 5%. The company will make about $2.5 billion in capital investments this year, about half of which will go toward opening about 1,100 new restaurants, McDonald's CEO Jim Skinner said in a statement Monday.
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