McDonald's executive reveals that the average cost of menu items has increased by 40% since 2019.

• A McDonald's executive is addressing allegations that the company has increased its prices by over 100%.
• In an open letter, Joe Erlinger, president of McDonald's USA, stated that the cost of a Big Mac meal has risen by 27% since 2019, while the price of a 10-piece McNuggets meal has increased by 28% over the same period. Additionally, the price of medium french fries has gone up by 44%.
• McDonald's is not immune to consumer pullbacks at restaurants and will soon offer a $5 value meal for a month.

A high-ranking official is addressing allegations that the corporation has increased its prices excessively.

In an open letter on Wednesday, Joe Erlinger, president of McDonald's USA, revealed that the average price of McDonald's menu items has increased by approximately 40% since 2019. This information contradicts claims made on social media by House Republicans and others that the fast food company raised prices by more than 100%.

""Across the country, Americans are making tough decisions about how to allocate their limited funds," Erlinger stated. "We must remain focused on providing value and affordability to our fans, even as we work hard to attract them to our venues," he added."

In 2019, the average price of a Big Mac meal was $7.29, but today it is $9.29, which is a 27% increase. Similarly, the price of a 10-piece McNuggets meal has increased by 28% over the same period, and the price of medium french fries has gone up by 44%.

Erlinger stated that the rise in costs is linked to a corresponding increase in input costs, including crew wages and the cost of goods.

Erlinger stated that as a brand serving nearly 90% of the U.S. population annually, it is their responsibility to ensure accurate information is accessible.

The Bureau of Labor Statistics reports that consumer prices have risen by 3.4% in the past year. Due to the ongoing increase in costs, some consumers are cutting back on dining out, including at fast food chains.

McDonald's reported lower-than-expected same-store sales in their first-quarter earnings report. The company will soon introduce a $5 value meal, which will be available for a month, starting from June 25.

CNBC previously reported that the offering will consist of a McChicken or McDouble, four piece chicken nuggets, fries, and a drink.

Analysts at BTIG described the promotion as being more related to how it is perceived in terms of value rather than its impact on profits.

The analysts believe that the new one-month meal deal could harm McDonald's sales and margins, but it could help the company regain its position as a value leader in the industry by changing the media narrative around its recent price hikes.

McDonald's franchisees are urging the company to make the discounted menu item permanent, but only if they receive more investment from the company.

The National Owners Association wrote in a letter to its membership that McDonald's must make a financial contribution to keep the model sustainable as there is not enough profit to discount 30%.

— CNBC's Kate Rogers contributed to this report.