McDonald’s is making a big move to win back customers who have been grumbling about the price of their favorite fast-food meals. Starting next month, the iconic burger chain will slash the cost of its combo meals by about 15% compared to buying the items separately, according to The Wall Street Journal and CNN. The price cuts, which will roll out across U.S. locations in September 2025, come after months of mounting complaints that McDonald’s had simply gotten too expensive for many Americans.
For some, the sticker shock was real. In certain places, a Big Mac meal had soared to as much as $18—hardly the kind of value the Golden Arches once promised. “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,” CEO Chris Kempczinski told investors and analysts on August 6, 2025, as reported by The Wall Street Journal.
These changes are more than just a tweak to the menu. McDonald’s is doubling down on affordability, hoping to recapture the budget-minded diners who once made it a go-to destination. Alongside the price cuts, the company is rolling out new deals, including a $5 breakfast combo and an $8 Big Mac and McNugget special, designed to compete with both fast-food rivals and sit-down chains like Chili’s and Applebee’s that have been thriving at similar price points. As CNN explained, the aim is to “draw back value-minded customers who were turned off by spending $10 or more on a fast-food meal.”
The decision wasn’t made lightly. According to The Wall Street Journal, McDonald’s and its U.S. franchisees spent weeks negotiating the details, with the company even offering financial support to franchisees willing to drop their prices. Ultimately, the two sides agreed to keep eight popular combo meals at 15% less than the total cost of the individual items. These deals will be marketed as Extra Value Meals, a nod to McDonald’s long-standing reputation for affordable fast food.
“We recognize that consumers’ value perceptions are most influenced by our core menu pricing,” Kempczinski said during the company’s Q2 earnings call. “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 CEO’s comments, delivered on August 6, 2025, made it clear that McDonald’s leadership sees the pricing issue as central to its future success.
But why did things get so pricey in the first place? In places like California, the answer is partly legislative. The passage of Assembly Bill 1228 in 2023 raised the minimum wage for fast-food workers at large chains from $16 to $20 per hour—the highest in the nation. That extra labor cost inevitably found its way onto the menu, forcing prices up and, for some customers, pushing McDonald’s out of their price range.
It’s not just McDonald’s feeling the pressure. Yum Brands, which owns Taco Bell, KFC, and Pizza Hut, also reported lower same-store sales in the first quarter of this year as customers balked at rising prices. Chipotle, another major player in the quick-service world, saw a 4% decline in same-store sales in the second quarter—worse than its Q1 performance. 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 both saw same-store sales rebound slightly in the second quarter, according to The Wall Street Journal.
Still, the challenge for McDonald’s is steep. While its new McValue deal menu has helped, many diners continue to feel that the chain’s overall prices remain too high. The company’s willingness to subsidize franchisees who lower prices underscores just how seriously it’s taking the threat to its reputation for value. As The Wall Street Journal reported, these subsidies are designed to drive traffic back to stores and help franchisees weather the short-term hit to their margins.
The move is already causing ripples in the industry. Investment firm TD Cowen told investors that it was “surprised” by the magnitude of the price reductions and McDonald’s willingness to offer subsidies to franchisees. In a research note published on August 20, 2025, TD Cowen said the company’s value efforts might actually pose “more of a problem” for burger competitors like Wendy’s, Restaurant Brands, and Jack in the Box than for McDonald’s itself. The firm maintained a Hold rating and a $315 price target on McDonald’s shares, signaling cautious optimism about the chain’s prospects.
For McDonald’s, the stakes couldn’t be higher. The company was founded in San Bernardino, California, in 1940, and for decades, it set the standard for affordable, convenient meals. But as prices crept up, some customers began to wonder whether the Golden Arches still stood for value. The new price cuts are a direct response to that perception, an attempt to restore the brand’s reputation and keep pace with a changing market.
Of course, the broader economic context can’t be ignored. Inflation has squeezed American wallets in recent years, and the fast-food sector has been hit hard by rising labor, ingredient, and operational costs. In this environment, even small price differences can be a deciding factor for families deciding where to eat. McDonald’s leadership is betting that a renewed focus on value will help it weather the storm and come out ahead of its rivals.
Looking ahead, McDonald’s plans to keep a close eye on customer feedback and adjust its strategy as needed. The company has made it clear that it’s willing to work “collaboratively” with franchisees to address pricing concerns and develop new ideas for restoring affordability. It’s a delicate balancing act: keep customers happy, keep franchisees profitable, and keep the competition at bay.
As the new prices roll out next month, all eyes will be on McDonald’s to see whether the changes are enough to win back value-conscious diners. For now, the company is sending a clear message: it’s listening, and it’s ready to fight for its place as America’s favorite fast-food stop.
