Japan's McDonald's fast food restaurants will raise prices on about 60% of its offerings, fueled by rising input costs and exchange-rate fluctuations, the company said on Monday.
It marks the company's second set of price increases this year as Japan grapples with inflationary pressures and a slide in the yen to a 24-year-low, making imported ingredients more expensive. The two rounds of hikes this year are the first since 2019.
From Friday, the cost of the signature Big Mac hamburger will increase to ¥410 ($2.85) from ¥390, McDonald's Holding Company Japan said in a statement, reflecting increases of ¥10 to ¥30 on many items.
A Big Mac costs $5.15 in the United States, according to The Economist magazine's index of prices worldwide. The price difference implied that Japan's currency was undervalued by 45%, according to the gauge when it was last updated in July.
McDonald's Japan is raising prices for the second time in 2022 on its cheeseburgers, which will cost ¥180 each from Friday from ¥140 at the beginning of the year.
Rising production costs and the yen's slide have spurred price increases by 60% of major Japanese restaurants, according to a survey issued this month by Tokyo Shoko Research.
Separately, Mister Donut shops in Japan are to raise prices on most items by about 7.4% from Nov. 25, its parent company, Duskin, said.
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