Kingsview CIO Scott Martin On Fox Business Your World With Cavuto 1.31.2024
NEIL CAVUTO: All right, $7 for an Egg McMuffin. McDonald’s clarified that this is just one franchisee in Connecticut on a busy turnpike and it’s not the norm. However, these sporadic instances of eye-popping fast food prices are still climbing. Joining us is Scott Martin, CIO of Kingsview Asset Management and Fox News contributor. Scott, if I recall correctly, you once paid around $25-$28 for a standard meal at Taco Bell. Can you share that experience and why you chose to pay that much for tacos?
SCOTT MARTIN: It was quite a shock, Neil, and we discussed it on your show on FBN. The price I paid was for a couple of tacos and burritos, and it totaled about $28, partly due to the high Illinois state tax. Similar to the Egg McMuffin scenario, the Taco Bell in downtown Chicago charged what the market could bear. As people’s demand for these items increases, the prices are likely to go up.
NEIL CAVUTO: What’s interesting about your experience, Scott, and I say this with a bit of humor, is how you cut to the core of what people are thinking. Despite the administration saying inflation is slowing down, we see stubborn price increases in basic food items. The cost of Italian sausage, for example, has doubled, and this impacts Americans in their daily lives. They might not see these price hikes at every McDonald’s or Taco Bell, but when they do, it’s frustrating.
SCOTT MARTIN: Absolutely, Neil. And I’d add kielbasa and salami to that list. It’s shocking how expensive everyday items like fruit and eggs have become. These are the things the American public feels but aren’t always highlighted in discussions. It seems the president is still out of touch with this reality, and that’s why his message isn’t resonating.
NEIL CAVUTO: McDonald’s and other fast food giants are profiting significantly because many Americans rely on them for quick meals. I personally avoid processed foods, but for many, it’s a lifestyle choice. People need to understand that while some economic indicators show improvement, the reality for many is still challenging. The difference in cost can affect how much people can afford to order.
SCOTT MARTIN: Exactly, Neil. And let’s not forget about the steak, egg, and cheese bagel, which is a favorite breakfast item but might cost as much as a mortgage payment these days. People in areas with high inflation or price increases are concerned about their future spending. They’re seeing some improvement in prices, but not as much as some officials claim, which affects their daily purchasing decisions.
NEIL CAVUTO: Let’s talk about a hot topic: Egg McMuffin vs. Sausage McMuffin. I prefer the Sausage McMuffin for its substance. What about you?
SCOTT MARTIN: The Sausage McMuffin offers more value for money. The Egg McMuffin is a classic and started the trend, but I agree the Sausage McMuffin is an improvement. However, these days, my go-to is the steak, egg, and cheese bagel. I’d treat you to one anytime.
NEIL CAVUTO: You must be richer than I am, Scott. Thanks for your insights.