McDonald’s is executing a multi-pronged strategy to reinforce its value proposition and counter consumer perceptions of escalating prices. Amidst a landscape of tightened household budgets and persistent inflationary pressures, the fast-food giant is collaborating closely with its extensive franchisee network to recalibrate its pricing and promotional strategies, aiming to restore its image as an accessible dining option.
- Reduced prices on eight popular combo meals by 15% through a franchisee agreement.
- Planned introduction of specific “Extra Value Meals,” including a $5 breakfast special and an $8 Big Mac and McNugget combo.
- Launched the “McValue” menu category with a “Buy One, Add One for $1” option across meal times.
- Intensified digital engagement through app-exclusive deals and loyalty incentives.
- Empowered local franchisees to offer tailored promotions on specific menu items.
Strategic Initiatives for Enhanced Value
Targeted Price Reductions and New Value Meals
Central to McDonald’s efforts is an agreement with U.S. franchisees to reduce the cost of eight popular combo meals by 15% compared to purchasing items individually. This initiative, detailed in company materials reviewed by The Wall Street Journal, involves financial backing from McDonald’s Corporation to support franchisees in implementing these price adjustments. Further bolstering affordability, the company plans to introduce specific “Extra Value Meals” later this year, including a $5 breakfast special and an $8 Big Mac and McNugget combo.
Broadening Value Through Menus and Digital Engagement
These targeted price reductions complement broader value initiatives already underway. In January, McDonald’s launched its “McValue” menu category, offering a “Buy One, Add One for $1” option for breakfast, lunch, and dinner. The company has also intensified its digital engagement by introducing app-exclusive deals, such as free medium fries with a $1 purchase every Friday in 2025 and a complimentary McCrispy chicken sandwich for new app users, encouraging platform adoption and loyalty. Local franchisees are also empowered to offer tailored promotions on items like the McGriddle.
Addressing Pricing Perceptions and Market Realities
Refuting Misleading Price Narratives
The strategic pivot comes as McDonald’s actively addresses public discourse regarding its pricing structure. In May 2024, Joe Erlinger, President of McDonald’s U.S., publicly refuted “poorly sourced reports” that suggested the company had significantly raised prices beyond inflationary rates, specifically addressing the narrative of $18 Big Mac meals. Erlinger emphasized that while isolated instances of higher prices might occur, they are exceptions and do not represent the typical pricing across McDonald’s more than 13,700 U.S. locations.
Transparent Price Adjustments and Inflationary Context
Erlinger clarified the actual trajectory of price adjustments, stating that the average price of a Big Mac in the U.S. increased from $4.39 in 2019 to $5.29 in 2023. This 21% increase, he noted, reflects broader inflationary pressures over the past few years, including rising labor costs influenced by factors such as minimum wage hikes in key regions. The company’s focus remains on balancing operational costs with consumer affordability expectations.
McDonald’s comprehensive approach underscores a strategic imperative to manage both the reality and perception of its value offerings in a competitive market. By combining franchisee collaboration with digital innovation and transparent communication, the company seeks to reaffirm its position as a cost-effective choice for consumers facing economic constraints.
Oliver brings 12 years of experience turning intimidating financial figures into crystal-clear insights. He once identified a market swing by tracking a company’s suspiciously high stapler orders. When he’s off the clock, Oliver perfects his origami… because folding paper helps him spot market folds before they happen.