Coming price cuts at McDonald’s may signal a broader fast food price war

By DEE-ANN DURBIN Associated Press Business Writer McDonald s is cutting prices on several combo meals to woo back customers who ve been turned off by the rising costs of grabbing a fast food meal The price drop may induce its rivals who have run into selected of the same pricing issues to follow Starting Sept McDonald s will offer Extra Value Meals which combine select entr es like a Big Mac an Egg McMuffin or a McCrispy sandwich with medium fries or hash browns and a drink Prices will vary by location but McDonald s reported Extra Value Meals will cost less than ordering each of those items separately Related Articles Region Basket mediation this week in Delaware pits brother against his sisters Nestl dismisses CEO after an assessment into a relationship with a subordinate Requested on Reddit Should I save for my retirement or my child s guidance Modi and Putin affirm special relationship as India faces steep US tariffs over Russian oil imports How to ID personality styles in the workplace To kick off the promotion McDonald s will offer an Big Mac meal or a Sausage McMuffin meal for a limited time in majority of the country Customers in California Alaska Hawaii and Guam will have to pay more for those meals McDonald s for years has seen a steady decline in visits from customers in the U S who have household incomes of less than per year CEO Chris Kempczinski explained those consumers and others no longer see McDonald s as a good value At a McDonald s near the company s Chicago headquarters for example a -piece Chicken McNugget meal costs Higher prices have been been a drag on sales McDonald s same-store sales or sales at stores open at least a year grew in the April-June period but that was mostly because of higher prices Fast food visits by lower-income consumers dropped by double-digit percentages industrywide in the second quarter McDonald s mentioned Currently too often if you re that consumer you re driving up to the restaurant and you re seeing combo meals priced over Kempczinski explained during a conference call with investors in August That absolutely is shaping value perceptions in a negative way So we ve got to get that fixed McDonald s job has been made harder by prices that can vary widely around the country In May after a post on X about a Big Mac meal in Connecticut that cost went viral McDonald s called it an exception and noted that franchisees set prices for nearly all U S restaurants The company also blames higher costs The average price of its menu items rose between and McDonald s stated to account for a increase in the cost of labor packaging and food But within a month McDonald s introduced a Meal Deal which combined a McDouble burger or a McChicken sandwich with small fries and a small drink That deal proved so popular it was extended through this summer In January McDonald s added another promotion letting customers buy a limited number of items for if they bought one full-priced item Those deals will remain alongside the Extra Value Menu for now McDonald s mentioned Other chains are also seeking to grab the attention of feasible customers In late August Domino s launched its Best Deal Ever promotion offering any pizza with any toppings for Overall U S fast food customer traffic fell nearly in the second quarter according to Revenue Management Solutions a consulting company The company mentioned price increases were sharply lower than previous quarters suggesting that chains are already offering more deals