Food costs affect all restaurant operators, including McDonald’s. McDonald’s purchases food commodities such as beef, poultry, fish, potatoes, dairy products, and other items from thousands of suppliers. To put this in perspective, one of McDonalds’ biggest suppliers, Keystone Foods, provides it with 150 million pounds of beef, 300 million pounds of chicken, and 15 million pounds of fish each year. Tyson Foods (TSN) acquired Keystone Foods in 2018.
According to the US Department of Agriculture, average beef prices increased 2% in 2018. Paper costs include the cost of napkins, straws, containers, and other packaging materials. Overall, food and paper costs account for around 38% of McDonald’s company-operated restaurant expenses.
View more information: https://marketrealist.com/2019/11/how-mcdonalds-wages-major-costs-stack-up/