http://ca.news.finance.yahoo.com/s/2...akes-bite.html
Costs had doubled over the past year because of the fall in the krona currency and high import tariffs on imported goods, Ogmundsson said, making it impossible for the company to raise prices further and remain competitive with competitors that use locally sourced produce.
A Big Mac in Reykjavik already retails for 650 krona ($5.29). But the 20 per cent increase needed to make a decent profit would have pushed that to 780 krona ($6.36), he said.
That would have made the Icelandic version of the burger the most expensive in the world, a title currently held jointly by Switzerland and Norway where it costs $5.75, according to The Economist magazine's 2009 Big Mac index.
Sounds like they could have survived had they been willing to source their food locally to help get around the falling currency and import tariffs. Still thats an expensive burger. Never would have thought Iceland to be a country where McDonalds got too expensive.