McDonald’s Corp. and its U.S. franchisees have agreed to cut the price of eight popular combo meals by roughly 15%, the Wall Street Journal reported, citing company materials. The move comes after consumers balked at menu inflation that in some locations pushed a Big Mac meal to $18. Beginning in early September, the chain will market $5 breakfast deals and $8 Big Mac or Chicken McNugget meals under the revived “Extra Value Meal” banner, with additional promotions slated for November. The discounts—kept in place through 2026—aim to price the bundles below the cost of ordering items separately; a $10 combo would fall to about $8.50. The agreement follows weeks of negotiations in which McDonald’s offered financial assistance to operators to offset narrower margins, people familiar with the talks told the Journal. Management hopes the uniform pricing will restore the company’s reputation for affordability and blunt competitive messaging from rivals that have highlighted its higher prices. Chief Executive Officer Chris Kempczinski warned earlier this month that combo meals above $10 were hurting value perceptions. The company’s recent value promotions helped it beat second-quarter same-store sales estimates, and analysts say the latest nationwide discounts could deepen the fast-food industry’s ongoing price war. McDonald’s shares rose about 1% in New York morning trading.
Wrote more about McDonald's combo price discounts, which is a big deal, and was a giant bomb dropped in the middle of a year-long fast-food price war. These graphics show the challenge the chain's competitors face. Data from @technomic. https://t.co/aLHxFVadoa https://t.co/MRvCXrQdPh
McDonald's, $MCD, is slashing the prices of its combo meals just weeks after CEO Chris Kempczinski said that value-minded consumers are “too often” seeing combo meals priced above $10 — which he warned is “shaping value perceptions in a negative way." McDonald’s and its U.S. https://t.co/OV8Uri6Est
The fast-food giant is cutting the prices of its combo meals after admitting its menu has become too expensive. https://t.co/VbRu7EJJca