McDonald's Cuts Combo Meal Prices 15% Across US

McDonald's is reducing the prices of eight popular combo meals by 15% starting this fall to address customer complaints about rising costs and to boost traffic amid economic pressures. The fast-food chain will reintroduce its "Extra Value Meals" branding, offering $5 breakfast deals and $8 Big Mac and Chicken McNuggets combo meals, with plans to subsidize franchisees who lose money due to the price cuts. This strategic move follows extensive negotiations with franchisees who had concerns over profitability but agreed after McDonald's promised financial support and joint marketing efforts. CEO Chris Kempczinski acknowledged that value perception is largely influenced by menu pricing and that the chain must fix its image as prices had risen too high, exemplified by a viral $18 Big Mac combo incident. The price adjustments aim to compete with rivals and cater to consumers increasingly focused on value due to inflation and reduced discretionary spending. Wall Street analysts are watching closely to see how these changes impact McDonald's sales growth and profit margins.