At A Glance
- McDonald’s will roll out new Extra Value Meals starting Sept. 8, priced about 15% lower than buying items separately.
- A Big Mac meal will be offered for $8 and a Sausage McMuffin meal for $5 in most states (California, Alaska, Hawaii, and Guam pay $1 more).
- The move comes as McDonald’s struggles with declining visits from lower-income households and rising perceptions of poor value.
- Competitors like Domino’s are also launching deals to counter falling fast food traffic nationwide.
McDonald’s Cuts Combo Meal Prices to Win Back Customers
Starting September 8, McDonald’s will introduce new Extra Value Meals that undercut the cost of buying items individually. The lineup includes Big Macs, Egg McMuffins, and McCrispy sandwiches paired with fries or hash browns and a drink, all at roughly 15% savings.
To kick things off, the chain will push limited-time offers: an $8 Big Mac meal and a $5 Sausage McMuffin meal in most of the country. Customers in California, Alaska, Hawaii, and Guam will pay $1 more.
Value Play Aimed at Lower-Income Customers
The company admitted it has been losing ground with households earning under $45,000. CEO Chris Kempczinski acknowledged that consumers don’t see McDonald’s as a good value anymore, citing meals regularly topping $10.
McDonald’s has faced heat online over pricing, especially after a viral post about an $18 Big Mac meal in Connecticut. While the company blamed that price point on franchisee discretion, it also admitted its average menu costs are up 40% since 2019 due to higher labor, food, and packaging costs.
Competing Chains Step Up Promotions Too
McDonald’s isn’t alone in trying to re-court budget-conscious customers. Domino’s just rolled out its Best Deal Ever promo in late August, offering any pizza with any toppings for $9.99.
Industrywide, fast food visits fell by nearly 1% in the second quarter, according to consulting firm Revenue Management Solutions. With fewer customers and waning tolerance for higher prices, chains appear ready to stack the menu with more deals.
