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Coming price cuts at McDonald's may signal a broader fast food price war

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Coming price cuts at McDonald's may signal a broader fast food price war
News

News

Coming price cuts at McDonald's may signal a broader fast food price war

2025-09-03 02:07 Last Updated At:02:12

McDonald’s is cutting prices on some combo meals to woo back customers who’ve been turned off by the rising costs of grabbing a fast food meal.

The price drop may induce its rivals, who have run into some of the same pricing issues, to follow.

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A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

FILE - A McDonald's Big Mac, left, rests in a box next to a bag of McDonald's fries, in Walpole, Mass., Wednesday, April 20, 2022. (AP Photo/Steven Senne, File)

FILE - A McDonald's Big Mac, left, rests in a box next to a bag of McDonald's fries, in Walpole, Mass., Wednesday, April 20, 2022. (AP Photo/Steven Senne, File)

FILE - A McDonald's order is delivered on the drive-thru window Tuesday, Aug. 5, 2025, in Arlington, Texas. (AP Photo/Julio Cortez, File)

FILE - A McDonald's order is delivered on the drive-thru window Tuesday, Aug. 5, 2025, in Arlington, Texas. (AP Photo/Julio Cortez, File)

FILE - This photo shows a McDonald's restaurant in Ridgeland, Miss., Wednesday, Feb. 14, 2018. (AP Photo/Rogelio V. Solis, file)

FILE - This photo shows a McDonald's restaurant in Ridgeland, Miss., Wednesday, Feb. 14, 2018. (AP Photo/Rogelio V. Solis, file)

Starting Sept. 8, McDonald’s will offer Extra Value Meals, which combine select entrées like a Big Mac, an Egg McMuffin or a McCrispy sandwich with medium fries or hash browns and a drink. Prices will vary by location, but McDonald’s said Extra Value Meals will cost 15% less than ordering each of those items separately.

To kick off the promotion, McDonald’s will offer an $8 Big Mac meal or a $5 Sausage McMuffin meal for a limited time in most of the country. Customers in California, Alaska, Hawaii and Guam will have to pay $1 more for those meals.

McDonald’s for years has seen a steady decline in visits from customers in the U.S. who have household incomes of less than $45,000 per year. CEO Chris Kempczinski said those consumers, and others, no longer see McDonald’s as a good value.

At a McDonald’s near the company’s Chicago headquarters, for example, a 10-piece Chicken McNugget meal costs $10.39.

Higher prices have been been a drag on sales. McDonald’s same-store sales – or sales at stores open at least a year – grew 2.5% in the April-June period, but that was mostly because of higher prices. Fast food visits by lower-income consumers dropped by double-digit percentages industrywide in the second quarter, McDonald’s said.

“Today, too often, if you’re that consumer, you’re driving up to the restaurant and you’re seeing combo meals priced over $10,” Kempczinski said during a conference call with investors in August. “That absolutely is shaping value perceptions in a negative way. So we’ve got to get that fixed.”

McDonald's job has been made harder by prices that can vary widely around the country. In May 2024, after a post on X about a Big Mac meal in Connecticut that cost $18 went viral, McDonald’s called it an “exception” and noted that franchisees set prices for nearly all U.S. restaurants.

The company also blames higher costs. The average price of its menu items rose 40% between 2019 and 2024, McDonald’s said, to account for a 40% increase in the cost of labor, packaging and food.

But within a month, McDonald’s introduced a $5 Meal Deal, which combined a McDouble burger or a McChicken sandwich with small fries and a small drink. That deal proved so popular it was extended through this summer.

In January, McDonald’s added another promotion, letting customers buy a limited number of items for $1 if they bought one full-priced item. Those deals will remain alongside the Extra Value Menu for now, McDonald's said.

Other chains are also seeking to grab the attention of potential customers. In late August, Domino’s launched its Best Deal Ever promotion, offering any pizza with any toppings for $9.99.

Overall U.S. fast food customer traffic fell nearly 1% in the second quarter, according to Revenue Management Solutions, a consulting company. The company said price increases were sharply lower than previous quarters, suggesting that chains are already offering more deals.

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

A McDonald's Big Mac Combo Meal is shown in Detroit, Tuesday, Sept. 2, 2025. (AP Photo/Paul Sancya)

FILE - A McDonald's Big Mac, left, rests in a box next to a bag of McDonald's fries, in Walpole, Mass., Wednesday, April 20, 2022. (AP Photo/Steven Senne, File)

FILE - A McDonald's Big Mac, left, rests in a box next to a bag of McDonald's fries, in Walpole, Mass., Wednesday, April 20, 2022. (AP Photo/Steven Senne, File)

FILE - A McDonald's order is delivered on the drive-thru window Tuesday, Aug. 5, 2025, in Arlington, Texas. (AP Photo/Julio Cortez, File)

FILE - A McDonald's order is delivered on the drive-thru window Tuesday, Aug. 5, 2025, in Arlington, Texas. (AP Photo/Julio Cortez, File)

FILE - This photo shows a McDonald's restaurant in Ridgeland, Miss., Wednesday, Feb. 14, 2018. (AP Photo/Rogelio V. Solis, file)

FILE - This photo shows a McDonald's restaurant in Ridgeland, Miss., Wednesday, Feb. 14, 2018. (AP Photo/Rogelio V. Solis, file)

CAPE CANAVERAL, Fla. (AP) — NASA fueled its moon rocket Wednesday for humanity’s first lunar trip in more than half a century, aiming for an evening liftoff with four astronauts.

Tensions were high as hydrogen fuel started flowing into the rocket hours ahead of the planned launch. Dangerous hydrogen leaks erupted during a countdown test earlier this year, forcing a lengthy flight delay.

But no significant leaks occurred by the time Wednesday's fueling wrapped up. The launch team loaded more than 700,000 gallons of fuel (2.6 million liters) into the 32-story Space Launch System rocket on the pad, setting the stage for the Artemis II crew to board.

“It is time to fly,” commander Reid Wiseman said on the eve of launch via X. Favorable weather was forecast.

Three Americans and one Canadian will fly around the moon without stopping or even orbiting — then head straight back for a Pacific splashdown. They will set a new distance record for the farthest humans have traveled from Earth as they zoom some 4,000 miles (6,400 kilometers) beyond the moon and then hang a U-turn.

Astronauts last flew to the moon during Apollo 17 in 1972.

Artemis II is the opening shot of NASA's grand plans for a permanent moon base. The space program is aiming for a moon landing near the lunar south pole in 2028.

“The next era of exploration begins,” NASA Administrator Jared Isaacman posted on X.

Best wishes already have started to pour in, including from England's King Charles III to Canadian Space Agency astronaut Jeremy Hansen.

Hansen will become the first non-U. S. citizen to launch to the moon. The crew also includes Christina Koch and Victor Glover, the first woman and first Black astronaut, respectively, destined for the moon.

“In this historic moment, you stand as a bridge between nations and generations,” the king wrote in a letter to Hansen, “and I commend you for your courage, discipline and vision that have brought you to this threshold.”

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

NASA's Artermis II moon rocket sits on Launch Pad 39-B at the Kennedy Space Center hours ahead of a planned launch attempt Wednesday, April 1, 2026, in Cape Canaveral, Fla. (AP Photo/Chris O'Meara)

NASA's Artermis II moon rocket sits on Launch Pad 39-B at the Kennedy Space Center hours ahead of a planned launch attempt Wednesday, April 1, 2026, in Cape Canaveral, Fla. (AP Photo/Chris O'Meara)

This photo provided by NASA shows NASA astronauts Reid Wiseman, Artemis II commander, from left, Victor Glover, Artemis II pilot, Christina Koch, Artemis II mission specialist, and CSA (Canadian Space Agency) astronaut Jeremy Hansen, Artemis II mission specialist, right, in a group photograph as they visit NASA's Artemis II SLS (Space Launch System) rocket and Orion spacecraft, Monday, March 30, 2026, at Launch Complex 39B of NASA's Kennedy Space Center, in Cape Canaveral, Fla. (Bill Ingalls/NASA via AP)

This photo provided by NASA shows NASA astronauts Reid Wiseman, Artemis II commander, from left, Victor Glover, Artemis II pilot, Christina Koch, Artemis II mission specialist, and CSA (Canadian Space Agency) astronaut Jeremy Hansen, Artemis II mission specialist, right, in a group photograph as they visit NASA's Artemis II SLS (Space Launch System) rocket and Orion spacecraft, Monday, March 30, 2026, at Launch Complex 39B of NASA's Kennedy Space Center, in Cape Canaveral, Fla. (Bill Ingalls/NASA via AP)

NASA's Artermis II moon rocket sits on Launch Pad 39-B at the Kennedy Space Center hours ahead of planned liftoff Wednesday, April 1, 2026, in Cape Canaveral, Fla. (AP Photo/Chris O'Meara)

NASA's Artermis II moon rocket sits on Launch Pad 39-B at the Kennedy Space Center hours ahead of planned liftoff Wednesday, April 1, 2026, in Cape Canaveral, Fla. (AP Photo/Chris O'Meara)

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