Key Points
- McDonald's is reducing prices on eight of its most popular combo meals by approximately 15%, so a combo that typically costs $10 could drop to around $8.50.
- Later this year, it's introducing “Extra Value Meals”, including a $5 breakfast combo and an $8 Big Mac or McNuggets combo.
- McDonald's will provide financial support to franchisees who agree to lower their prices. The price cuts will take effect next month, in early September.
Over the past few years, inflation and rising operating costs have led to higher combo prices at McDonald's. Big Mac meals have since increased by about 27% since 2019, with some prices reaching as high as $18 in travel plazas or airports. No wonder customers have been shocked.
McDonald's is responding to growing concerns that its combo meal prices have become too high. The Wall Street Journal reported the price cut plan; however, the company hasn't issued a formal public statement yet.
McDonald's CEO Chris Kempczinski publicly admitted in its August 6 earnings call that menu prices have become unaffordable over the past several years. Kempczinski mentioned that visits from low-income consumers“ once again declined by double digits versus the prior-year period.” But visits from middle-income consumers have improved.
He added that “re-engaging the low-income consumer is critical” because they visit McDonald’s more frequently than middle- and high-income customers.
Meals that cost more than $10 are negatively shaping their value perceptions.
He added that “the single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board”, highlighting just how powerful that first glance can be.
To address this, McDonald's is expanding its value-friendly offerings. The $5 value meal, launched last year, temporarily stabilized sales by giving customers more for the money. Additionally, McDonald's has been busy revitalizing its menu with revamped chicken strips, new drinks, and themed meals to keep things enticing.
What Will Actually Change?
Although not yet confirmed by McDonald's, the following menu items are expected to change.
- Eight of McDonald’s most popular combo meals, including Big Mac, Quarter Pounder with Cheese, Chicken McNuggets, McCrispy, Egg McMuffin, and more, will be priced below the combined cost of individual items, starting early September and lasting into early 2026.
- Extra Value Meals return later this year. In September, expect $5 Sausage Egg McMuffin deals and $8 Big Mac meals. From November, look for the $5 Sausage, Egg & Cheese McGriddle and the $8 10-piece McNuggets meal.
- Franchisees get help, too: to get them on board, McDonald’s will subsidize participating restaurants to offset any lost margin, especially after anticipating increased traffic from these deals.
With CEO Chris Kempczinski acknowledging price issues and taking steps to fix them, backed by subsidized deals for franchisees, McDonald’s is aiming to reclaim its value-era glow. These changes take effect in September, so keep an eye on the menu board.
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