McDonald’s Sees Profit Growth as It Cautiously Raises Menu Prices

McDonald’s reported increased profits on Thursday, crediting strategic price hikes as it continues to manage inflationary pressures—an environment the company says works in its favor.

Despite rising costs for food, packaging, and labor, the fast-food giant raised prices by just over six percent in the U.S. last year without significant backlash from customers, according to Chief Financial Officer Kevin Ozan.

“We typically implement modest price increases gradually rather than all at once,” Ozan told analysts during a conference call, noting that McDonald’s still earns strong value ratings in customer surveys.