McDonald’s Makes Historic Move to Cut Prices for the First Time in Years
Something almost unheard of is happening at McDonald’s – they’re actually cutting prices. This is sort of an unprecedented move. I don’t think we’ve ever seen prices cut, according to restaurant analyst Eric Gonzalez. The Golden Arches has finally listened to frustrated customers who’ve been increasingly vocal about sky-high meal prices that can reach over ten dollars for a simple combo.
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. This means that a $10 combo meal may now cost $8.50. The change isn’t just a temporary promotion – it’s a fundamental shift in how McDonald’s approaches pricing in an era where even fast food has become expensive.
The Fifteen Percent Solution That Could Save McDonald’s
McDonald’s and its US franchisees agreed to price eight popular combo meals at 15% less than the total cost of buying the items separately, with the chain offering financial support to franchisees if they agree to lower prices. This discount structure applies to some of their most beloved menu items, creating real savings for customers who’ve been priced out of their favorite fast food spot.
The math is simple but powerful. Shifting to a 15% discount would cut prices by about 460 basis points, or an average of 52 cents. What’s more, many of its core menu items will have average combo meal prices below $10, a key psychological barrier for many consumers. For a company that built its reputation on affordability, getting back under that ten-dollar threshold represents more than just financial strategy – it’s about reclaiming their identity.
Which Combo Meals Are Getting the Price Cuts
Customers can expect lower costs on combo meals including the following items starting early September: Big Mac, Chicken McNuggets, McCrispy, Quarter Pounder with Cheese, Egg McMuffin, and some breakfast sandwiches. These aren’t random selections – they represent McDonald’s core offerings that customers order most frequently.
The timing couldn’t be more strategic. The changes will come into effect next month, and prices will vary by location. While regional differences will still exist due to franchisee independence, the overall discount structure remains consistent nationwide. The plan is to keep discounts in place through at least the beginning of 2026, showing McDonald’s commitment to this pricing strategy isn’t just a temporary band-aid solution.
The Five Dollar Breakfast Deal and Eight Dollar Big Mac Specials
Beyond the percentage cuts, McDonald’s is rolling out specific promotional pricing that feels like a throwback to simpler times. 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. These deals represent some of the most aggressive pricing McDonald’s has offered in years.
September: $5 Sausage Egg McMuffin meals and $8 Big Mac meals. November: $5 Sausage, Egg and Cheese McGriddle and $8 10-piece Chicken McNuggets meals. The staging of these deals throughout the fall creates multiple opportunities for customers to rediscover McDonald’s value proposition. It’s a calculated campaign to win back hearts, minds, and wallets.
Corporate Support Helps Franchisees Accept Lower Profits
The company promised to provide financial support if the franchisees agreed to the change, recognizing that asking independent business owners to cut prices requires corporate backing. To get the operators on board, the Chicago-based parent corporation pledged to subsidize franchises that lose money on the discounts.
This financial arrangement was crucial for getting buy-in across McDonald’s massive franchise system. Franchisees own and operate 93% of McDonald’s 38,000 worldwide locations, making their cooperation essential for any pricing strategy. The corporate support demonstrates how seriously McDonald’s takes this pricing reset – they’re literally putting their money where their mouth is.
Customer Traffic Collapsed as Prices Soared
The consequences of higher prices became impossible to ignore when traffic data started rolling in. McDonald’s U.S. first quarter 2025 traffic from low-income consumers declined by almost double-digits, and middle-income consumer traffic fell by nearly as much. Placer.ai’s data revealed McDonald’s overall foot traffic was down 2.6% compared to Q1 2024.
McDonald’s negative U.S. comparable sales marks the first time the chain’s same-store sales have been in the red since Q2 2020. Beginning last year we warned of a more discriminating consumer, particularly among lower income households. The chain discovered that even their most loyal customers have limits when it comes to fast food spending.
Competition from Casual Dining Threatens Fast Food’s Value Proposition
Casual dining restaurants, which had been losing market share over the years, began to recover in 2024. Same-store sales at Chili’s rose 24% in the fourth quarter thanks to a 16% increase in traffic. When customers can get a sit-down restaurant meal for roughly the same price as fast food, the value equation changes dramatically.
The inflation crisis of recent years altered many customers’ views of McDonald’s – from a cheap place to get a quick meal to a pricey fast food restaurant that barely undercut higher-quality sit-down alternatives like Applebee’s or Chili’s. This perception shift represents an existential threat to McDonald’s business model, which has always depended on being the affordable option.
The CEO Admits Menu Board Prices Shape Value Perceptions
The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board. And it’s when they drive up to the restaurant and they see the menu board, that’s what’s shaping the that’s the number one driver, CEO Chris Kempczinski admitted during an earnings call.
Too often, if you’re that consumer, you’re driving up to the restaurant and seeing combo meals priced over $10. And that absolutely is shaping value perceptions in a negative way … we’ve got to get that fixed. The company’s own research confirmed what customers had been saying – those drive-thru menu boards had become a source of sticker shock rather than appetite appeal.
McValue Platform Launches as Part of Broader Strategy
The combo meal price cuts are just one component of McDonald’s comprehensive value strategy. McDonald’s launched the McValue Platform in U.S. restaurants earlier this year. McDonald’s (NYSE:MCD) USA introduced the new value menu, McValue, across its restaurants starting January 7, 2025.
The McValue will have the beloved $5 meal deal, local deals varying by restaurant, in-app offers and exclusives and – new this year – the buy one, add one for a dollar deal. Starting January 2025, McDonald’s introduces the Buy One, Add One for $1 deal, allowing customers to mix and match menu favorites for less. This creates multiple ways for customers to save money and customize their orders.
Financial Results Show the Urgency Behind Price Cuts
McDonald’s U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company’s domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%. These numbers represent more than statistical disappointment – they signal a fundamental disconnect with customers.
Net income for the first quarter was $1.87 billion, a decline from $1.93 billion compared to the same period a year ago. While McDonald’s remains profitable, the downward trend in key metrics has created urgency around the pricing strategy. The company can no longer ignore that higher prices are driving away the very customers who built their success.
McDonald’s drastic move to cut combo meal prices represents more than just a temporary promotional strategy – it’s an admission that they pushed prices too far and lost touch with their value-oriented customer base. Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand. Whether these changes can restore McDonald’s reputation as an affordable dining option remains to be seen, but one thing is certain – the era of endlessly rising fast food prices may finally be coming to an end. Will customers return to the Golden Arches, or have they already found better value elsewhere?
