McDonald's hikes prices in Japan on higher input costs, weaker yen (updated)
26/09/2022 05:41
(Adds details in paragraphs 2-4)
TOKYO, Sept 26 (Reuters) - Japan's McDonald's fast food
restaurants will raise prices on about 60% of its offerings to
customers, fuelled by rising input costs and exchange-rate
fluctuations, the company said on Monday.
It marks the company's second set of price increases this
year as Japan grapples with inflationary pressures and a slide
in the yen to a 24-year-low, making imported ingredients more
expensive. The two rounds of hikes this year are the first since
2019. urn:newsml:reuters.com:*:nL4N30C14F
From this Friday, the cost of the signature Big Mac
hamburger will increase to 410 yen ($2.85) from 390 yen,
McDonald's Holding Company Japan Ltd 2702.T said in a
statement, reflecting increases of 10 to 30 yen on many items.
A Big Mac costs $5.15 in the United States, according to The
Economist magazine's index of prices worldwide. The price
difference implied that Japan's currency was undervalued by 45%,
according to the gauge when it was last updated in July.
McDonald's Japan is raising prices for the second time in
2022 on its cheeseburgers, which will cost 180 yen each from
Friday from 140 at the beginning of the year.
Rising production costs and the yen's slide have spurred
price increases by 60% of major Japanese restaurants, according
to a survey issued this month by Tokyo Shoko Research.
Separately, Mister Donut shops in Japan are to raise prices
on most items by about 7.4% from Nov. 25, its parent company,
Duskin Co. 4665.T , said.
($1=143.8000 yen)
(Reporting by Rocky Swift; Editing by Clarence Fernandez and
Sam Holmes)
((clarence.fernandez@thomsonreuters.com; +6568703861;
RM:clarence.fernandez.thomsonreuters.com@thomsonreuters.net))