how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.

Question

how huge food companies like Cargill and Mcdonald’s, etc. protect themselves from extreme price changes.

In: 858

Answer 1

In the case of McDonald’s, they sometimes use the extreme price changes as a gimmick.

When the price of pork gets low enough, McD’s buys up as much as they can to make McRibs. When the price goes back up, they stop buying and sell through however much they have.

This is why the McRib shows up on the menu ‘randomly’, and is only available for a limited time.