The customers have spoken — and McDonald’s is listening.
The fast-food giant is cutting the prices of its combo meals in response to growing concerns that its food has become unaffordable for many customers.
According to The Wall Street Journal, McDonald’s and its franchisees will reduce combo meal prices to approximately 15% below the cost of purchasing the items individually. The changes will take effect next month, and prices will vary by location.
“We recognize that consumers’ value perceptions are most influenced by our core menu pricing,” CEO Chris Kempczinski told investors and analysts on August 6, when McDonald’s reported its Q2 earnings. “We’re working closely and collaboratively with our U.S. franchisees on this opportunity, and we’re developing ideas for how we might address this as an entire system.”
The company also announced plans to expand its combo meal offerings, including a $5 breakfast deal and an $8 Big Mac and McNugget combo in the near future.
McDonald’s, which was founded in San Bernardino, California, in 1940, is not alone in facing backlash over rising menu prices. In the first quarter of this year, Yum Brands — which owns Taco Bell, KFC, and Pizza Hut — along with Chipotle, also reported lower same-store sales.
In response, many chains have launched promotions and new value meals to win back budget-conscious customers. And it appears to be working: McDonald’s and Yum Brands saw same-store sales rebound slightly in the second quarter. Chipotle, however, reported a 4% decline, worse than its Q1 performance.
“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,” Kempczinski said.
In California, higher menu prices can be partly attributed to the passage of Assembly Bill 1228 in 2023, which raised the minimum wage for fast-food workers at large chains from $16 to $20 per hour — the highest in the nation.
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