McDonald's Unveils New Pricing Strategy to Boost Market Share

McDonald's has announced a new pricing strategy for combo meals, aiming to capture greater market share. Analysts project a potential upside of over 7% for MCD stock, and brokerage consensus indicates an "Outperform" rating. The new pricing structure will make combo meals approximately 15% cheaper than individual items, with prices set for $5 breakfast combos and $8 Big Mac combos.

McDonald's has announced a significant change in its pricing strategy for combo meals, aiming to capture greater market share. Analysts project a potential upside of over 7% for MCD stock, with brokerage consensus indicating an "Outperform" rating. The new pricing structure will make combo meals approximately 15% cheaper than individual items, with prices set for $5 breakfast combos and $8 Big Mac combos [1].

The move follows weeks of discussions between McDonald's and restaurant operators, with the company offering financial support to franchisees who agreed to drop prices. The chain will run $5 breakfast and $8 Big Mac and McNugget combo meal specials later this year, marketing them as Extra Value Meals [1].

This pricing adjustment comes after years of rising menu costs, with some Big Mac meals approaching $18 and drawing consumer backlash. The average Big Mac meal now costs more than $10, with prices varying widely depending on location. Between 2019 and 2024, combo prices climbed 27% [2].

McDonald's executives acknowledged that pricey combo meals have become a sticking point for consumers. By reducing combo meal prices to 15% below the cost of individual items, the company is addressing affordability and reasserting its identity as a brand that prioritizes customer value [3].

The financial data underscores the urgency of this strategy. In Q1 2024, low-income customer traffic declined by double digits, while middle-income traffic followed a similar trend. By making combo meals more accessible, McDonald's is directly targeting these segments, which represent a significant portion of its historical customer base [3].

McDonald's Q2 2025 results highlight the financial viability of its strategy. The company exceeded earnings expectations, with an adjusted EPS of $3.19 and revenue of $6.84 billion. These figures, coupled with a 2.67% stock price surge post-earnings, reflect investor confidence in the company's ability to navigate macroeconomic headwinds [3].

Looking ahead, the projected 5.1% revenue growth to $27.4 billion in 2025 and a 60% increase in MyMcDonald's Rewards member visit frequency underscore the long-term potential of this strategy. For investors, the key metrics to monitor include same-store sales trends, digital adoption rates, and margin management [3].

References:
[1] https://www.staradvertiser.com/2025/08/20/breaking-news/mcdonalds-to-offer-discounted-combo-meals/
[2] https://www.chicagobusiness.com/restaurants/mcdonalds-lowers-combo-meal-prices-woo-customers
[3] https://www.ainvest.com/news/mcdonald-strategic-price-correction-catalyst-brand-equity-investor-returns-2508/