Fast food fans, get ready—your drive-thru experience may just get cheaper. McDonald’s is rolling out new Extra Value Meals, offering popular combos like the Big Mac and Egg McMuffin at a discount. The move isn’t just about generosity—it’s a calculated attempt to win back customers hit hardest by rising prices. With menu costs climbing and visits from lower-income consumers dropping, McDonald’s is setting the stage for a potential fast-food price war. Competitors like Domino’s and other chains may soon follow suit, hoping to catch customers’ attention.
Extra Value Meals Take Center Stage
Starting September 8, McDonald’s will introduce Extra Value Meals combining popular entrées with fries or hash browns and a drink. Prices will vary by location, but meals will cost about 15% less than buying items separately. Deals include an $8 Big Mac meal and a $5 Sausage McMuffin meal for most of the country. California, Alaska, Hawaii, and Guam customers will pay $1 extra. It’s McDonald’s latest effort to make its menu feel more affordable to everyday diners.
$5 Meal Deals Already Proved Popular
Earlier promotions, like the $5 Meal Deal, bundled a McDouble or McChicken with small fries and a small drink. Customers loved it, and McDonald’s extended the offer through summer. These deals helped show the company how pricing could attract budget-conscious visitors. They also set a precedent for the Extra Value Menu. The success highlighted that small price tweaks can have a big impact on traffic.
High Prices Hit Lower-Income Customers Hardest
McDonald’s has seen visits drop among U.S. households earning less than $45,000 a year. CEO Chris Kempczinski noted that these customers no longer see McDonald’s as a good value. Even a simple Chicken McNugget meal can cost over $10 in some locations. Price perception is shaping customer behavior, driving them to consider alternatives or skip fast food entirely.
Menu Prices Rose 40% in Five Years
Between 2019 and 2024, McDonald’s increased menu prices by 40%, reflecting rising labor, food, and packaging costs. While higher prices boosted same-store sales slightly, they also discouraged budget-conscious customers. Fast food traffic, particularly among lower-income diners, fell double digits in the second quarter. Price increases have been necessary for margins, but they’ve also triggered a customer backlash.
Franchise Pricing Creates Wide Variation
Not all McDonald’s meals cost the same—franchisees set their own prices. In 2024, a viral social media post showed a Big Mac meal costing $18 in Connecticut. The chain called it an “exception,” but it highlighted how pricing can vary dramatically across regions. Customers may see $10 combos in one state and pay much less elsewhere. This inconsistency has fueled perceptions of poor value.
Competitors Eye the Opportunity
The Extra Value Meals could pressure other chains to act. Domino’s recently launched its Best Deal Ever: any pizza with any toppings for $9.99. Promotions like this show competitors are already trying to attract cost-conscious customers. A full-blown fast-food price war could be on the horizon.
Fast-Food Traffic Declines Slightly
Overall U.S. fast-food visits fell nearly 1% in the second quarter, according to Revenue Management Solutions. Price increases were sharply lower than previous quarters, indicating that deals are already influencing behavior. Customers are paying attention, and chains are responding. It’s a sign that promotions like McDonald’s Extra Value Meals may be essential to reverse the trend.
Value Perception Shapes Consumer Choice
When customers feel overcharged, they vote with their wallets. Even small price drops can shift perceptions dramatically. McDonald’s hopes that its Extra Value Meals will show that fast food can still be a bargain. At the same time, competitors are watching closely. The coming months may reshape the industry’s approach to pricing.
