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After years of slowly, yet steadily, raising their prices, McDonald’s is finally going to be rolling back prices on some items with new Extra Value Meals. The move comes after McDonald’s reportedly spent weeks discussing the change with its franchisees and the company performed below its expectations for customer counts during the last quarter.
According to a Wall Street Journal report, McDonald’s had to offer financial support to franchisees to get them to agree to drop prices. The company will subsidize any restaurants who end up losing money on the discounts.
McDonald’s will be lowering the cost of its combo meals to 15% below the combined price of the individual items. They will also be offering $5 Sausage, Egg and Cheese McGriddles, and $8 Big Mac and 10-piece Chicken McNuggets combo meals at some point later this year. Snack Wraps will also continue to be offered at a price of $2.99 through the end of the year.
“Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand,” the Wall Street Journal reported Joe Erlinger, head of McDonald’s U.S. business, said in an internal message following the company’s earnings report earlier this month.
McDonald’s is finally listening to its customers
His statement comes after McDonald’s was repeatedly called out over the past few years for offering a Dollar Menu that had no items that actually cost $1 on it. McDonald’s first introduced its $1 $2 $3 Dollar Menu in 2018 after dumping its original Dollar Menu in 2013. However, by 2023, there wasn’t anything that cost $1 on the menu.
A 2024 study revealed that McDonald’s has been the fast food industry’s most egregious offender when it comes to raising prices over the past decade based on a study that asserts they’ve gone up 100% since 2014. While inflation rose approximately 32% over that time span, items like a McDouble (168%), medium fries (138%), and a Quarter Pounder with Cheese meal (122%) went up significantly more in price.
“Bringing back Extra Value Meals reflects the company and franchisees’ shared commitment to offering everyday affordable prices,” Danielle Marasco, a McDonald’s owner/operator and National Franchisee Leadership Alliance chair, said in a statement. “We’re working together to keep the menu items our customers love affordable for everyone in the communities we serve.”