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WASHINGTON, DC — A new analysis from government watchdog Accountable.US found that major food companies McDonalds, Chipotle, Kraft Heinz, and Wendy’s collectively spent billions on shareholder dividends and stock buybacks after raising prices on takeout food and groceries. Top brands like McDonalds saw overall earnings decline as customers continue to push back against excessive price hikes. Accountable.US’ review comes as fifteen state attorneys general formally urged Congress to pass a national ban on price gouging. 

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The trend continues. More and more big food companies chose to enrich a small group of wealthy investors rather than offer more reasonable prices to their customers – with many even raising prices to pay for supersized shareholder handouts. Brands like Kraft Heinz and McDonalds are making it more expensive for people to feed their families, and many shoppers are fed up. It’s clear we need a ban on price gouging since industries like big food refuse to pass their huge profits onto consumers.”

Accountable.US’ Liz Zelnick

This Week In Big Food Profiteering: Accountable.US’ review of the latest quarterly financial statements:

  • McDonald’s—which received a letter in October 2024 from a group of Democratic senators voicing concern over price increases in excess of inflation and approximately $7 billion in company stock buybacks in 2022 and 2023 that could have been used in business investments and worker growth—saw its Q3 net income decrease as diners continue pulling back on restaurant spending.
  • In Q3 2024, Chipotle saw its net income increase 14% to $387.4 million, helping the company spend $488.1 million on stock buybacks after its board approved $900 million in buyback authorizations since August 2024. 
  • Despite seeing its Q3 2024 net income decrease 214% amid decreased consumer demand after “repeated price hikes,” in 2024, Kraft Heinz has spent “$1.5 billion in cash dividends and repurchased $538 million of common stock,” with $2.4 billion remaining in its buyback authorization program as of late September 2024.
  • Despite continuing to see “muted” sales growth with plans to close 140 underperforming stores next quarter, Wendy’s spent $25.2 million on stock buybacks in Q3 2024 and has spent $2.7 million on buybacks in Q4 2024 as of October 24.

Read the full report here.

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