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As food costs are expected to rise about four percent in the United States and Europe from last year, McDonald's plans to raise its prices slightly and gradually. In March, the company raised all menu items by one percent, reports Nation's Restaurant News, and plans to "keep taking small, additional menu price increases."
McDonald's emphasized that it would not raise prices beyond the food-away-from-home inflation rate because, explains Pete Bensen, McDonald's Corp. chief financial officer, it is bad for traffic.
In a somewhat ironic move given the price increases, McDonald's has recently launched an ad campaign in Nordic countries that recalls the McDonald's of yore. The ads advertise a 1955 original version of the famous burger that used to sell for 15 cents.
Watch the new ad after the jump.
