Burger wars: McDonald's reportedly lowers prices of its combo meal menu offerings

[McDonalds Blanchardstown]

McDonald's (NYSE:MCD [https://seekingalpha.com/symbol/MCD]) has lowered the cost of its combo meals in the U.S. for 2025 after reaching an agreement with franchisees following weeks of talks.

The fast-food giant announced a 15% discount on eight of its popular combo meal offerings, according to _The Wall Street Journal._ The new menu pricing is set to take effect in early September, and operators will need to keep the discounts in place through the start of next year. In addition, the company plans to offer $5 and $8 meal specials nationwide later this year. The Big Mac and McNugget combo meal specials will be marketed as Extra Value Meals.

The initiatives are part of a larger strategy to address growing consumer concerns about fast food affordability, with many combo meals having recently risen above $10 in some locations. "The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board," stated McDonald’s Chief Executive Chris Kempczinski during the Q2 earnings conference call in August. "And it's when they drive up to the restaurant and they see the menu board that's what's shaping -- that's the #1 driver," he added.

Shares of McDonald's (NYSE:MCD [https://seekingalpha.com/symbol/MCD]) edged 0.2% higher in premarket trading on Wednesday. The menu pricing change could impact other fast-food chains such as Burger King (QSR [https://seekingalpha.com/symbol/QSR]), Wendy's (WEN [https://seekingalpha.com/symbol/WEN]), Taco Bell (YUM [https://seekingalpha.com/symbol/YUM]), Jack in the Box (JACK [https://seekingalpha.com/symbol/JACK]), Sonic, Whataburger, Culver's, Five Guys, Hardee's, Carl's Jr., Checkers, and Shake Shack (SHAK [https://seekingalpha.com/symbol/SHAK]).

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