Are Companies Still Milking Inflation? Bro, My McDonald’s Sprite Cost $12

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Are Companies Still Milking Inflation? Bro, My McDonald’s Sprite Cost $12

Ticker Warning: MCD, KO, PEP, PG—you’ve been served.

It’s the second half of 2025. The Fed is looking to ease up soon. Wages have cooled. Freight rates are normal-ish. But somehow, your morning McDonald’s order still costs more than a tank of gas did in 2020.

$12 for a Sprite, a small OJ, and a glorified sausage patty? Is this breakfast… or a flex?

Let’s hash(brown) it out.

The Great Excuse That Won’t Die

Companies spent 2021–2023 battling:

Sky-high commodity prices
Supply chain chaos
Rising wages
Elevated interest rates

So they raised prices—understandably. Consumers took it because “inflation” was the universal scapegoat. Everyone from your favorite shampoo brand to your go-to burger joint said:

“We hate to do it, but input costs, man.”

But here’s the kicker…

Input Costs Have Come Down. Prices Haven’t.

Freight? Down ~70% from the 2022 peak.
Wages? Still elevated, but stable.
Eggs, beef, wheat? Well off their highs.
Corn syrup? Still addictive. Still affordable.

And yet… your Sprite now costs $4.29, which makes no economic sense unless it comes with shareholder equity.

So, Are Companies Still Milking Inflation?

Objectively? Yes. In fact, it has a name: greedflation.

Here’s the playbook:

Blame rising costs to justify price hikes.
Costs fall? Don’t lower prices. Just quietly expand margins.
Say it’s about “investing in quality,” “supply chain resilience,” or “supporting our workers.”
Post record profits.
Repeat.

McDonald’s has reported record operating margins. Pepsi and Coca-Cola? Same. Consumer goods companies like Procter & Gamble (PG) and Unilever (UL) have literally said they’re seeing “price-led growth” even as volumes decline.

Translation: you’re paying more, they’re giving less, and Wall Street is cheering.

You’re Not Imagining It: Shrinkflation + Stickflation = Wallet Pain

Not only are prices high, but your portion size is smaller, packaging is flimsier, and that $7 smoothie is mostly air. It’s the combo meal of modern corporatism:

Shrinkflation: smaller products
Stickflation: sticky prices
Confusionflation: no one knows what’s real anymore nor why their sausage patty costs as much as it did during 2022, but hey, they’re at the drive-thru anyways, do you really think they’re going to leave the drive-thru and dip?

But Watch This: The Consumer Is Finally Pushing Back

Walmart, Target, and Aldi are starting price wars again.
Trader Joe’s just cut prices on dozens of SKUs.
Fast food traffic is down because people aren’t paying $17 for a burger with a motivational quote on the box, at least not a second time or beyond.

Even McDonald’s is pivoting to “value meals” in 2025 because they’ve milked the cow dry.

Investing Angle: Who Wins from the Squeeze?

Still inflating: MCD, KO, PEP, PG
Under pressure to cut: TGT, WMT, KR
Margin risk incoming: CMG, DPZ, SBUX

Watch for volume softness and promo reintroductions in Q3 earnings calls. Greedflation only works until the consumer wakes up and says:

“Nah, I’ll just eat at home, bruh.”

TL;DR

Yes, companies are still juicing inflation.
No, your $12 McDonald’s Sprite is not normal.
But the consumer is finally fighting back—and if price cuts come, margins will crack.

So grab your overpriced OJ, smile at the cashier, and remember: the real value meal is knowing which stocks stand to benefit moving forward.

DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.

MACROHINT

MACROHINT

Are Companies Still Milking Inflation? Bro, My McDonald’s Sprite Cost $12