McDonald's to retain 6% price increase till end of 2021

McDonald's would retain the 6 percent price increases from earlier in the year through the end of 2021 to cope with higher labor and supply costs.

CEO Chris Kempczinski said the 6 percent increase is "to cover both labor cost pressures and commodity cost pressures."

The wage hikes were in response to widespread labor shortages.

The initial increase in employee wages earlier in 2021 at McDonald's was 5 percent. Since then, the wages grew again, for a total increase of about 10 percent so far in 2021.

Wages for employees from company-owned stores shot up 15 percent.

Despite the operational cost increases, McDonald's same-store sales in the third quarter were up by 14.6 percent compared to 2019, with substantial increases in both its net income and overall sales.

Among McDonald's explanations for the sales growth was customers placing larger orders and buying for larger groups and with more to-go orders.

Growth was also driven by a jump in menu prices and menu development.