McDonald’s franchisees will cut the cost of combo meals to revive the chain’s image as an affordable option at a time when many consumers are keeping a close eye on their wallets.
After weeks of discussions, McDonald’s and its U.S. franchisees agreed to keep the cost of eight popular combo meals 15% lower than if the items were bought separately, according to company materials seen by The Wall Street Journal. The company promised to provide financial support if the franchisees agreed to the change, people familiar with the matter told the Journal.
A $5 breakfast and $8 Big Mac and McNugget combo meal special will also run later this year, with the company advertising them as Extra Value Meals.
MCDONALD’S CEO: CALIFORNIA MINIMUM WAGE HIKE DRIVING LABOR INFLATION
Most of the company’s restaurants worldwide are owned and operated by independent franchisees.
McDonald’s declined to comment.
The company has been trying to boost its value proposition and rejuvenate traffic among its budget-conscious consumers.
In January, the company began rolling out a new “McValue” menu category, part of the fast-food company’s comeback strategy, offering customers a “Buy One, Add One for $1” option for breakfast, lunch and dinner. The company simultaneously launched app-specific deals to drive customers to the platform, such as free medium fries with a $1 purchase every Friday in 2025 and a free McCrispy chicken sandwich for new app users.
The company also said its local franchisees were launching their own special deals on items such as the McGriddle and app-exclusive offers like 20% off $10 or more.
MCDONALD’S LOOKING TO BEEF UP WITH LARGER BURGERS
In 2024, the company was working to dismantle rumors that the company had significantly pumped up prices beyond inflationary rates as reports surfaced that $18 Big Mac meals were being sold.
In a note to customers in May 2024, McDonald’s U.S. President Joe Erlinger blamed “poorly sourced reports” for contributing to the narrative that the company “raised prices significantly beyond inflationary rates.”
“This is inaccurate,” Erlinger said, noting that while high-priced burgers exist, he said that this is an exception, not the norm.
“I can tell you that it frustrates and worries me, and many of our franchisees, when I hear about an $18 Big Mac meal being sold – even if it was at one location in the U.S. out of more than 13,700,” he said.
Erlinger said he’s more concerned “when people believe that this is the rule and not the exception, or when folks start to suggest that the prices of a Big Mac have risen 100% since 2019.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MCD | MCDONALD’S CORP. | 314.37 | +3.60 | +1.16% |
The average price of a Big Mac in the U.S. in 2019 was $4.39, according to Erlinger. Last year, the average cost was $5.29, an increase of 21% with all the inflationary pressures factored in from the past few years, he said.
Read the full article here
