McDonald's Sues Its Beef Suppliers Over Alleged Price Fixing

If you're a McDonald's Dollar Menu loyalist and rely on that McDouble for your dinner on the go, a new lawsuit may be of concern. Although the restaurant chain has managed to keep beef at a relatively low cost to the consumer, it may be paying more for the meat than is legal.

In a nearly 100-page document filed in New York State on October 4th, 2024, the McDonald's Corporation alleged that multiple beef packing companies have colluded to artificially inflate the price of beef. This price fixing accusation calls out Cargill, JBS USA Food Company, Swift Beef Company, JBS Packerland, National Beef Packing Company, Tyson Foods, and Tyson Fresh Meats as defendants, and suggests that the issue began as far back as January 1, 2015.

If this is true, the group of suppliers would be in violation of antitrust laws intended to ensure market fairness. And while it is the fast food chain that's making the claim, the impact of this type of price gouging affects the consumer, too, as the cost of the product is ultimately passed along when an establishment is forced to raise prices. Given how many hamburgers McDonald's sells in one second, that seriously adds up for everyone involved.

The list of defendants in this suit is notable as these companies represent around 80% of the total beef supply in the United States. (McDonald's is suing nine suppliers, but all nine fall under the umbrella of just four companies, thus why they often get the designation "The Big Four".) That means McDonald's doesn't have a whole lot of other supplier options — and they're not alone in sounding the alarm. Retailers like Kroger and Target, as well as cattle rancher groups have also been vocal with similar accusations in recent years, citing billions of dollars in losses.

For its part, McDonald's is hoping to secure a court order that will put a stop to price fixing, as well as damages for the impact of the conspiracy on the bottom line for its more than 13,000 U.S. based locations. Considering that every McDonald's burger, from the worst to the best would be impacted by a scheme like this, one can only speculate how many dollar menu purchases that unspecified number could cover. And while consumers may not be able to expect that they can buy the entire McDonald's menu for $2 like they could back in the 1950s, preventing inflation at the drive-thru is certainly of concern to everyone.