McDonald's cuts prices; other chains may follow

McDonald’s is slashing prices on some of its menu items to attract consumers as costs surge for fast-food meals.

The hamburger chain’s price reductions could influence its competitors, who are facing similar pricing challenges, to follow their strategy.

For instance, in late August, Domino’s started its Best Deal Ever promotion, offering any pizza with any toppings for $9.99.

McDonald’s price cuts start next week

Why you should care:

Beginning Sept. 8, McDonald’s will offer Extra Value Meals, which combine select entrées like a Big Mac, an Egg McMuffin or a McCrispy sandwich with medium fries or hash browns and a beverage. 

Prices will vary by location, but McDonald’s told the Associated Press that Extra Value Meals will cost 15% less than ordering each of those menu items separately.

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The Chicago-based company will also offer an $8 Big Mac meal or a $5 Sausage McMuffin meal for a limited time in most of the U.S. The AP noted that consumers in California, Alaska, Hawaii, and Guam will have to pay $1 extra for those menu items. 

Higher menu prices impact McDonald’s sales

By the numbers:

McDonald’s told the Associated Press that its same-store sales – or sales at restaurants open at least a year – increased 2.5% in the April-June period, but that was mainly based on higher prices. Meanwhile, Fast food restaurant visits by lower-income customers dipped by double-digit percentages industrywide in the second quarter.

In May 2024, after a post on X about a Big Mac meal in Connecticut that cost $18 went viral, McDonald’s called it an "exception" and explained that franchisees set prices for nearly all U.S. restaurants.

McDonald’s told the Associated Press that the average price of McDonald’s items increased 40% between 2019 and 2024, which accounted for a 40% increase in the cost of labor, packaging, and food.

But McDonald’s later introduced a $5 Meal Deal, which combined a McDouble burger or a McChicken sandwich with small fries and a small drink. That menu deal was popular among customers and the restaurant chain extended the deal through this summer.

 

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