McDonald’s is cutting prices on its combo meals after growing criticism that its food has become too expensive.
The move comes just weeks after the company’s CEO admitted the chain needed to make a change when it comes to customer perception of value, CNN reported.
The chain and its U.S. franchisees agreed to price eight popular combo meals at 15 percent less than the total cost of buying the items separately.
The discounts will take effect next month, and the corporation will subsidize franchisees who sell items at a loss.
McDonald’s declined to comment, according to CNN.
The Wall Street Journal first reported the news.
“Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand,” a company executive said.
The company will also expand its deals with a $5 breakfast special and an $8 Big Mac and McNugget combo.
The “Extra Value Meals” branding will return as part of the push.
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CEO Chris Kempczinski told investors this month that “consumers’ value perceptions are most influenced by our core menu pricing.”
He admitted that combo meals “too often” cost more than $10, which hurts customer opinion of the brand.
“The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board,” Kempczinski said on the Aug. 6 earnings call, according to CNN.
“We’ve got to get that fixed,” he added, CNN reported.
In 2023, a social media post showing an $18 Big Mac meal went viral online, drawing outraged comments and claims that the chain had abandoned its affordability roots.
McDonald’s USA President Joe Erlinger responded to the uproar with an open letter in May 2024.
“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,” Erlinger wrote.
He insisted the viral example was the exception and not the rule for his company’s prices.
“The average price of a Big Mac in the U.S. was $4.39 in 2019,” Erlinger said. “The average cost is now $5.29. That’s an increase of 21%.”
Erlinger also said more than 90 percent of U.S. franchisees currently offer meal bundles for $4 or less.
Cheapism noted that while McDonald’s appears to have secured franchisee buy-in, some owners could raise individual item prices to offset the new combo discounts.
Still, Cheapism reported, customers should expect at least some nationwide consistency on the $5 and $8 meal deals.
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