McDonald’s to slash combo meal prices— despite clashing with franchisees over surging costs

McDonald’s is slashing its combo meal prices — despite weeks of tussling with restaurant operators who pleaded that rising costs have made it difficult to sustain deals already on the menu.

Its US franchisees have agreed to keep the cost of eight popular combos 15% below the sum of the individual items’ prices, according to internal materials viewed by the Wall Street Journal.

A combo meal currently selling for $10, for example, could go for as little as $8.50 under the new discounts.

That agreement followed weeks of pressure from McDonald’s, which eventually offered to subsidize possible losses for operators – but only after accounting for increased traffic the deals might drive to stores, sources involved in the talks said.

The world’s largest fast-food chain is on a mission to restore its affordable image following persistent complaints from customers that its menu has grown too expensive, with a Big Mac, fries and drink costing $18 in some places.

The company relies heavily on low-income consumers, who visit its restaurants more frequently than middle- and high-income groups, CEO Chris Kempczinski said earlier this month after its second-quarter earnings report.

“Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand,” Joe Erlinger, head of McDonald’s US business, said in an internal message earlier this month.

Starting in early September, combos including those featuring the Big Mac, Quarter Pounder with Cheese, Chicken McNuggets, McCrispy sandwich, Egg McMuffin and breakfast sandwiches will be discounted.

Operators will be required to keep these discounts in place through the start of next year.

McDonald’s will also bring back its Extra Value Meals, including a $5 Sausage Egg McMuffin and $8 Big Mac meal in September, as well as a $5 Sausage, Egg and Cheese McGriddle and $8 10-piece Chicken McNuggets meal in November.

McDonald’s did not immediately respond to The Post’s request for comment.

At most US locations, McDonald’s combo meals are priced below the sum of the items’ individual cost, but the size of that discount varies. Franchisees usually set these prices.

The company has been pressuring franchisees to limit price hikes to less visible items on the menu.

“The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board,” Kempczinski said during an investor call this month.

It’s been a battle for the fast-food chain, as operators have in turn pushed McDonald’s to cut deals like $1 drinks from the menu, citing rising costs.

While the chain’s McValue menu helped US same-store sales rebound in the most recent quarter after two periods of steep declines, it still underperformed in terms of customer counts, Erlinger said in his message.

Executives blamed part of the slump on McDonald’s menu items that cost $10 and more.

The average large Big Mac meal costs $10.53, but that price can go as high as $18.99 at pricier locations, like those located in travel plazas and airports, according to market-research firm Technomic.

Prices for Big Mac combo meals soared 27% between 2019 and 2024, according to the company.

But restaurants from IHOP to Chipotle have been sounding the alarms as stubbornly high prices and economic uncertainty lead Americans to eat at home more.

Traffic to US restaurants has plunged 1.7% so far this year, and about 2.7% for fast-food chains, according to Black Box Intelligence, a market research firm.

Both McDonald’s and its franchisees will fund a marketing campaign to advertise the new deals.