McDonald’s, the world’s largest fast-food chain, is taking bold action to reclaim its reputation for affordability after customers and franchisees alike sounded alarms over the rising cost of combo meals. On August 20, 2025, the company announced a sweeping price reduction on its most popular combo offerings, a move that will see these meals priced at least 15% lower than if the items were purchased separately. The new pricing will take effect in September 2025 and is part of a broader effort to win back value-minded diners and stem declining traffic to its restaurants.
The decision follows months of internal debate and negotiation. According to The Wall Street Journal, McDonald’s U.S. franchisees—who own and operate the vast majority of the company’s restaurants—had been pushing back against corporate pressure to keep prices low, citing surging labor and ingredient costs. But with customer visits dropping 1.7% at McDonald’s and 2.7% across fast-food chains this year, as reported by Black Box Intelligence, the company saw little choice but to act decisively.
“Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand,” Joe Erlinger, head of McDonald’s U.S. business, said in an internal message earlier this month, as cited by The Wall Street Journal. The chain’s CEO, Chris Kempczinski, echoed these sentiments during the August 6 earnings call, stating, “Consumers’ value perceptions are most influenced by our core menu pricing.”
It’s no secret what prompted the urgency. In recent years, McDonald’s combo meals—once synonymous with fast, cheap eats—have come to rival the price of meals at sit-down chains like Chili’s and Applebee’s. The infamous $18 Big Mac combo, sold at a Connecticut rest stop in 2023, went viral and sparked a national debate about whether McDonald’s had abandoned its affordable roots. Though company leadership insists this was an outlier, the episode left a mark. “I can tell you that it frustrates and worries me, and many of our franchisees, when I hear about an $18 Big Mac meal being sold—even if it was at one location in the U.S. out of more than 13,700,” Erlinger wrote in a note to customers in May 2024, as reported by Fox Business.
In response, McDonald’s is not only cutting prices but also revamping its value menu strategy. The company will relaunch its Extra Value Meals—branding that hasn’t been widely marketed since before the pandemic. Starting in September, customers can look forward to a $5 Sausage Egg McMuffin breakfast deal and an $8 Big Mac meal. In November, a $5 Sausage, Egg and Cheese McGriddle and an $8 10-piece Chicken McNuggets meal will join the lineup. These deals, designed to appeal to budget-conscious consumers, are expected to remain in place through early 2026.
To get franchisees on board with the new pricing, McDonald’s has agreed to subsidize operators who lose money on the discounted combos—but only after accounting for any increase in store traffic that the deals generate. Both the company and its franchisees will fund a major marketing campaign to promote the new offers nationwide, according to Restaurant Business and The Wall Street Journal.
The move comes as McDonald’s faces mounting competition not only from traditional fast-food rivals like Wendy’s, Burger King, and Jack in the Box, but also from casual dining chains that have managed to keep their prices competitive. The company’s leadership is betting that a renewed focus on value will help reverse declining customer counts and reinforce its image as the go-to spot for a quick, affordable meal. As Kempczinski put it on the earnings call, “The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board. And it’s when they drive up to the restaurant and they see the menu board, that’s the number one driver.”
Franchisees, who set prices at the local level, have historically offered discounts on combo meals. But the size of those discounts has varied widely, with the average Big Mac combo meal costing $9.44 and prices ranging from $8.19 to $11.69, according to Technomic data cited by Restaurant Business. Under the new mandate, operators must offer a set 15% discount off the combined price of individual items for eight popular combos, including the Big Mac, Quarter Pounder with Cheese, Chicken McNuggets, McCrispy sandwich, Egg McMuffin, and other breakfast sandwiches.
McDonald’s has also been working to rebuild trust with consumers following widespread reports—often exaggerated, according to company leaders—that its prices had soared out of control. In May 2024, Erlinger addressed these concerns head-on, stating, “The average price of a Big Mac in the U.S. in 2019 was $4.39. Last year, the average cost was $5.29, an increase of 21% with all the inflationary pressures factored in from the past few years.” He added, “While high-priced burgers exist, this is an exception, not the norm.”
Beyond price cuts, McDonald’s has been experimenting with themed meals and limited-time offers to boost sales. The recent Minecraft Movie meal, for example, helped lift same-store sales by 2.5% in the U.S. last quarter, ending a two-quarter slump, as reported by Restaurant Business and CNN. The company has also rolled out app-specific promotions—like free fries with a $1 purchase every Friday and a free McCrispy chicken sandwich for new app users—to drive digital engagement and reward loyal customers.
Still, the chain’s core customer base—low-income consumers—remains under pressure as real incomes have fallen. As Kempczinski acknowledged, “Real incomes are down with the low-income consumer. That is absolutely going to put pressure on visits in the QSR industry.” The company hopes that by making its menu more accessible, it can win back these diners and fend off competition in what’s shaping up to be a fierce value war through the end of 2025.
Most industry observers agree that McDonald’s latest round of price cuts is as much about perception as it is about economics. The company is betting that by restoring the prominence of its value offerings—and making sure customers see those deals front and center on the menu board—it can shift the narrative and bring back lapsed diners. Whether the strategy will work remains to be seen, but one thing’s for sure: the battle for fast-food value is far from over.
