McDonald’s to Drop Combo Meal Prices, Subsidize Franchisees' Losses - WSJ

McDonald’s is reducing the cost of its combo meals with hopes of winning back customers after three consecutive underwhelming quarters.

The Report: The Wall Street Journal (Center bias) reported that McDonald’s and its US franchisees agreed to keep the cost of eight combo meals 15% less than the sum of the individual items’ cost. The chain will also have a $5 breakfast special and $8 Big Mac and McNugget combo options later this year. The development comes after weeks of talks with franchisees, which McDonald’s said it will offer financial support to if they drop prices. The new prices will take effect in early September, and franchisees will be required to keep prices down through the beginning of 2026.

For Context: In late July, some McDonald’s executives said they believed the chain’s prices had gotten too expensive. Despite growth in same-store sales in its most recent quarter, after two quarters of decline, McDonald’s still performed below expectations with its customer counts, according to US business head Joe Erlinger.

How The Media Covered It: The Journal noted in its opening that some consumers were left “sticker-shocked by Big Mac meals that climbed to $18 in some places,” ostensibly referring to a mainstream media storyline covered across the spectrum in early 2024. CNN (Lean Left) framed its news against the company’s recent statements that it had become too expensive. The New York Post (Lean Right) highlighted corporate’s negotiations with franchisees in its headline and noted that it had to “subsidize possible losses for operators – but only after accounting for increased traffic the deals might drive to stores.”

Written by the AllSides staff (of humans). Learn more. Support our mission.