
McDonaldβs is cutting prices on some combo meals to woo back customers whoβve been turned off by the rising costs of grabbing a fast food meal.
The price drop may induce its rivals, who have run into some of the same pricing issues, to follow.
Starting Sept. 8, McDonaldβs will offer Extra Value Meals, which combine select entrΓ©es like a Big Mac, an Egg McMuffin or a McCrispy sandwich with medium fries or hash browns and a drink. Prices will vary by location, but McDonaldβs said Extra Value Meals will cost 15% less than ordering each of those items separately.
To kick off the promotion, McDonaldβs will offer an $8 Big Mac meal or a $5 Sausage McMuffin meal for a limited time in most of the country. Customers in California, Alaska, Hawaii and Guam will have to pay $1 more for those meals.
McDonaldβs for years has seen a steady decline in visits from customers in the U.S. who have household incomes of less than $45,000 per year. CEO Chris Kempczinski said those consumers, and others, no longer see McDonaldβs as a good value.
At a McDonaldβs near the companyβs Chicago headquarters, for example, a 10-piece Chicken McNugget meal costs $10.39.
Higher prices have been a drag on sales. McDonaldβs same-store sales β or sales at stores open at least a year β grew 2.5% in the April-June period, but that was mostly because of higher prices. Fast food visits by lower-income consumers dropped by double-digit percentages industrywide in the second quarter, McDonaldβs said.
βToday, too often, if youβre that consumer, youβre driving up to the restaurant and youβre seeing combo meals priced over $10,β Kempczinski said during a conference call with investors in August. βThat absolutely is shaping value perceptions in a negative way. So weβve got to get that fixed.β
McDonald's job has been made harder by prices that can vary widely around the country. In May 2024, after a post on X about a Big Mac meal in Connecticut that cost $18 went viral, McDonaldβs called it an βexceptionβ and noted that franchisees set prices for nearly all U.S. restaurants.
The company also blames higher costs. The average price of its menu items rose 40% between 2019 and 2024, McDonaldβs said, to account for a 40% increase in the cost of labor, packaging and food.
But within a month, McDonaldβs introduced a $5 Meal Deal, which combined a McDouble burger or a McChicken sandwich with small fries and a small drink. That deal proved so popular it was extended through this summer.
In January, McDonaldβs added another promotion, letting customers buy a limited number of items for $1 if they bought one full-priced item. Those deals will remain alongside the Extra Value Menu for now, McDonald's said.
Other chains are also seeking to grab the attention of potential customers. In late August, Dominoβs launched its Best Deal Ever promotion, offering any pizza with any toppings for $9.99.
Overall U.S. fast food customer traffic fell nearly 1% in the second quarter, according to Revenue Management Solutions, a consulting company. The company said price increases were sharply lower than previous quarters, suggesting that chains are already offering more deals.