McDonald’s rebrands affordability with price cuts and "Extra Value Meals"

McDonald’s is implementing a strategic pricing adjustment to reposition itself as a more affordable option amid a challenging economic environment. The fast-food giant, together with U.S. franchisees, has agreed to reduce the cost of eight popular combo meals by 15% compared to their individual item prices, according to reports in The Wall Street Journal [1] and The Independent [2]. This decision is part of an effort to restore the brand’s image as a go-to destination for budget-conscious consumers who have grown increasingly critical of the rising menu prices [3]. A $10 combo meal could now cost $8.50, offering a tangible price cut to customers [1]. The company also announced the return of the “Extra Value Meals” branding, which includes $5 breakfast and $8 Big Mac and McNugget combo meals [1]. This initiative marks the first time since the pandemic that the brand has rebranded its affordable meal options as “Extra Value Meals” [2]. The initiative is scheduled to roll out in September and November, with specific offerings like the $5 Sausage Egg McMuffin and $8 Big Mac meals, and later the Sausage, Egg and Cheese McGriddle with 10-piece Chicken McNuggets for $5 and $8, respectively [2]. In January, McDonald’s introduced a new “McValue” menu category, offering a “Buy One, Add One for $1” option for breakfast, lunch, and dinner [1]. The company has also launched app-specific promotions, such as free medium fries with a $1 purchase every Friday in 2025 and a free McCrispy chicken sandwich for new app users, to drive engagement [1]. These efforts are aimed at reversing a declining trend in visits from low-income consumers, a segment that historically represents a core customer base. In a recent earnings call, McDonald’s CEO Chris Kempczinski acknowledged the challenges, noting that visits by this group have declined by double digits year-over-year [3]. The average Big Mac meal in the U.S. cost $10.53, and prices varied significantly by location, from $5.69 to $18.99, according to data from Technomic [2]. Despite the presence of high-priced meals, McDonald’s U.S. President Joe Erlinger emphasized that these are exceptions and not the norm, while also highlighting the inflationary pressures that have contributed to overall price increases [1]. The company’s move is a response to mounting customer dissatisfaction, especially on social media, where users have expressed frustration over the cost of meals that were once considered affordable [2]. These complaints were further amplified by a viral 2023 tweet showing a Big Mac combo meal priced at nearly $18 [2]. In a May 2024 customer note, Erlinger addressed these concerns, stating that reports of significant price hikes beyond inflation were “inaccurate” [1]. He also provided specific data, noting that the average Big Mac price in the U.S. rose from $4.39 in 2019 to $5.29 in 2024, a 21% increase that accounted for inflationary pressures [1]. The company’s strategy is expected to include additional support for franchisees, including financial assistance to facilitate the pricing changes [1]. The impact of these measures remains to be seen, but the company’s focus on affordability and value appears to be a direct response to current consumer sentiment and economic conditions [3]. Source: [1] McDonald's to slash combo meal prices to win back budget-conscious shoppers (https://www.foxbusiness.com/lifestyle/mcdonalds-slash-combo-meal-prices-win-back-budget-conscious-shoppers) [2] McDonald's plans to cut combo meal prices after complaints (https://www.independent.co.uk/news/world/americas/mcdonalds-prices-combo-meal-cost-b2811052.html) [3] What We Know About McDonald's Combo Meal Price Reduction (https://parade.com/food/mcdonalds-lower-prices-combo-meals-news)