Agflation: End of $1 McDonald's Double Cheese?
ABC NEWS -- Since 2006, the price of bread has risen 24%, beef 4.4%, cheese 6.6%, and condiments, from ketchup to mustard to pickles, 3%. Rising food prices add a dime to the wholesale cost of every cheeseburger.
For McDonald's, the biggest change surrounds the star of its dollar menu, the double cheeseburger. Some franchises are now selling it with one slice of cheese instead of two. Others are raising the price by as much as 19 cents, taking it off the dollar menu altogether.
"The life of the double cheeseburger remains to be seen," Jeffery Bernstein, Lehman Brothers analyst, said. "They'll still sell it, but you might not be seeing it for a dollar for much longer." For McDonald's, the dollar deals drive traffic, accounting for 14% of sales.