McDonald’s plans to reduce prices on some of its combo meals in an effort to attract customers who have been discouraged by the rising cost of fast food. The move could prompt other fast food chains facing similar challenges to make comparable pricing changes.
Beginning September 8, McDonald’s will introduce Extra Value Meals that include select entrées such as a Big Mac, Egg McMuffin, or McCrispy sandwich with medium fries or hash browns and a drink. The company said these meals will be priced 15% lower than if each item were purchased separately, though exact prices will depend on location.
To launch the promotion, most locations across the country will offer an $8 Big Mac meal and a $5 Sausage McMuffin meal for a limited time. Customers in California, Alaska, Hawaii, and Guam will pay $1 more for these meals.
CEO Chris Kempczinski noted that U.S. customers with household incomes below $45,000 have been visiting less frequently. He stated: “Today, too often, if you’re that consumer, you’re driving up to the restaurant and you’re seeing combo meals priced over $10. That absolutely is shaping value perceptions in a negative way. So we’ve got to get that fixed.”
For example, at a location near McDonald’s Chicago headquarters, a 10-piece Chicken McNugget meal costs $10.39.
The company reported that higher menu prices have contributed to slowing sales growth. Same-store sales grew 2.5% between April and June this year—growth attributed mainly to price increases rather than higher customer traffic. According to McDonald’s, industrywide visits from lower-income consumers dropped by double digits during the second quarter.
Price differences also exist across regions due to franchisees setting their own prices for nearly all U.S. restaurants. In May 2024, after reports of an $18 Big Mac meal in Connecticut circulated online and drew criticism from customers (https://www.cnn.com/2024/05/29/business/mcdonalds-big-mac-meal-price/index.html), McDonald’s described it as an exception but acknowledged franchisee control over pricing.
The company attributes much of its price increases—an average rise of 40% between 2019 and 2024—to higher labor, packaging, and food costs.
In response to customer concerns earlier this year, McDonald’s introduced several deals including a popular $5 Meal Deal consisting of a McDouble burger or McChicken sandwich with small fries and a drink; this offer was extended through summer due to strong demand (https://www.restaurantbusinessonline.com/financing/mcdonalds-extends-its-5-meal-deal-through-summer). Another ongoing promotion allows customers to buy select items for $1 when purchasing another full-priced item.
Other fast food chains are also adjusting their strategies amid changing consumer behavior; Domino’s recently launched its Best Deal Ever promotion offering any pizza with any toppings for $9.99 (https://www.qsrmagazine.com/news/dominos-launches-best-deal-ever-promotion).
