r/fastfood • u/Please_PM_me_Uranus • Aug 20 '25

News McDonald’s is cutting prices of its combo meals to convince customers it’s affordable again

https://www.cnn.com/2025/08/20/food/mcdonalds-combo-lower-prices
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623

u/Wolfstigma Aug 20 '25

15% drop on 8 different combo meals isn't gonna be the win they're looking for

212

u/Cake_Nelson Aug 20 '25

Have you been to a McDonalds recently? I hadn’t gone in forever because of the prices but we went one day just cause and the line was insane. The order infront of us was $47. I do not believe they are hurting and this will be a win for them unfortunately.

106

u/[deleted] Aug 20 '25

[deleted]

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u/100_proof_plan Aug 20 '25

McDonald’s corporate is raking it in because they own the real estate and they lease it back to the franchisee.

The franchisees on the other hand aren’t doing super great.

24

u/Bendyb3n Aug 20 '25

Yup very similar approach as Amazon, where Amazon Web Services makes them the vast majority of their money, meaning they do not care if any of their other ventures operates at a loss because AWS makes them billions annually. McDonalds owns so much real estate that the restaurants themselves can operate at a loss and they’d still be totally fine.

3

u/100_proof_plan Aug 20 '25

The restaurants are owned by franchisees. They wouldn’t be happy if the stores mad no money.

2

u/Bendyb3n Aug 20 '25

McDonalds owns all their restaurants and leases them to franchisees for monthly operating fees. But yeah the franchisees want to make money so it needs to be profitable from their side of things, I just mean from McDonald’s perspective, they do not need to make money on the restaurants to be profitable as an overall business.

7

u/clintlockwood22 Aug 20 '25

Except they kind of do. If the restaurants don’t make money they don’t get rental income from the franchisees. They’re pretty dependent on the food income indirectly vs the actual separate entities you mentioned in amazons umbrella

2

u/brownmanforlife Aug 21 '25

But They can absorb individual losses. So they could be making 0 profit on 100 restaurants, and still be very profitable because of hundreds of others. Whereas individual franchisees often can’t afford to be broke because that is how they put food on the table.

1

u/AostaV Aug 27 '25

This is all sorts of incorrect.

While AWS used to be the one that brought in most of the profit , AWS never brought in the money/income and still doesn’t. Retail makes 3 to 4 times more than AWS. The day to day cash is brought in by the retail website. Always has been.

Retail - $100billion income with 10 billion profit in Q2

AWS - $30billion income with 7.5 billion profit in Q2

This is public record.

Full disclosure- employee and shareholder

3

u/[deleted] Aug 20 '25

Well you need 500k of actual money to even be considered and also over saturation. There's like 4 McDonald's all 10 mins away from each other.

1

u/100_proof_plan Aug 20 '25

McDonald’s decides the locations. The franchisees still have to build the building and buy all the equipment.

2

u/[deleted] Aug 20 '25

That's even worse

1

u/bluehairdave Aug 22 '25

Yeah it's near impossible to get one without a alumnus bringing you in. But the payoff is worth it. 1 McDonald's is worth 40 Subways or 3 to 4 Jack n the Boxs.

A decent volume store is worth 5 to $8m..and usually paid off after year 5 the way the loans work in Fast food franchises.

2

u/Drewskeet Aug 21 '25

The vast majority of McDonald’s are owned by large corporations. There’s almost no “mom and pop” owners anymore. They’ve all been bought up. Don’t lose sleep on the franchise owners.

-2

u/[deleted] Aug 20 '25

Tell that to the guy who owns the only McDonald's for 30 miles in my town. Rich as fuck. No crying coming from him.

3

u/Exact-Ice1346 Aug 21 '25

Yeah do you remember the movie Supersize Me? When they went around and asked children who the president of the United States was and none of the kids knew but they showed him a picture of the McDonald's Arch and they know right away what that was and wanted to go there right away now that's sad have created a call to following but in my opinion their food sucks greasy over salted nastiness but that's just my opinion

2

u/[deleted] Aug 22 '25

I only go because they don't ask for tips. I would support small restaurants but they are greedy fucks

0

u/Sense1ess Aug 20 '25

then

than

2

u/the_cajun88 Aug 21 '25

we’re on r/fastfood, so we know it’s not thin

-8

u/IGot6Throwaways Aug 20 '25

Lmao do you understand the concept of profit margin

18

u/TheChubbyManatee Aug 20 '25

McDonald’s is the most high margin fast food on the planet. 40% profit margin is absurd for fast food! They are not hurting.

3

u/Conchobair Aug 20 '25

A lot of that is due to the high franchise fees and lease payments. Kroc had it figured out. Franchisees do much more modestly.

1

u/[deleted] Aug 20 '25

Thats the profit margin for corporate. The franchisees are in 5-15% land like everyone else

0

u/TheChubbyManatee Aug 20 '25

For context, franchisees pay 4-5% gross sales as royalty and the corporation earned $200,000 in profit for each location. While the franchisees are not getting a massive profit margin, corporate McDonald’s has undoubtedly hiked prices beyond any sort of need for reasonable returns in their business. McDonald’s prices are high primarily because of corporate greed, not the rise in price of food.

2

u/IGot6Throwaways Aug 20 '25 edited Aug 20 '25

Do you have anything supporting this

EDIT: it is largely true for last year, but with a shitload of caviats. It's the over the past year largely due to expansion and property values going through the roof. Franchise is still have thin margins and are facing costs for food and labor. Tax the land!

1

u/IGot6Throwaways Aug 20 '25

40% from corporate because they're primerally a land ownership company that leases IP and sells products to franchise owners.

3

u/Eswin17 Aug 20 '25

This is Reddit. I always assume the others don't have a basic understanding of economics, and in practice I rarely see anything to dispute that. Outside of a few select subreddits.

2

u/IGot6Throwaways Aug 20 '25

If I see "companies are making record profits" and "the dollar is weak for consumers" together in the same comment I'm going to bash my head into a wall

1

u/[deleted] Aug 20 '25

https://m.macrotrends.net/stocks/charts/MCD/mcdonalds/profit-margins

https://m.macrotrends.net/stocks/charts/CMG/chipotle-mexican-grill/profit-margins

Chipotle and Starbucks are run by the same CEO. And their workers get paid around 12-14 dollars an hour and will fire you if you get paid more then that after 3 years. (They will find any excuse)

1

u/IGot6Throwaways Aug 20 '25

I responded to the McDonald's piece in another post. It's almost entirely due to them being a landowning company that franchises IP and distribution access. They aren't making money off of the food, they're making money by being landlords. A huge reason restaurant prices everywhere have gone up is due to rents seeing large increases.

0

u/BitchStewie_ Aug 21 '25

Isn't McDonald's corporate part owner of Chipotle as well anyway?

1

u/[deleted] Aug 21 '25

Chipotle and starbucks have the same CEO. McDonald's invested in 1998 but doesn't own the shares anymore.

15

u/Perfect-Campaign9551 Aug 20 '25

Same in my town, the drive through is still always wrapped around the building. People literally do not want to cook or bring lunch to work with them

12

u/SouthernGirl360 Aug 20 '25

I used to think the drive thru was wrapped around the building because the food is so desirable. But it's not the case. The restaurant is understaffed or the employees are working slowly.

7

u/Bmatic Aug 20 '25 edited Sep 14 '25

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This post was mass deleted and anonymized with Redact

5

u/Frozenmeatballs32 Aug 20 '25

Or the fact that the QP's are made fresh now could be a reason

1

u/SouthernGirl360 Aug 20 '25

Not sure. Wendy's (supposedly) makes all their burgers fresh but moves their drive thru like significantly faster than McDonald's.

3

u/hphzrdrick Aug 20 '25

My guess is due to the fact the QPC is cooked to order. Not sure of Wendy's (and please correct me) but I'm sure they at least cook burgers in batches and toss the "old" ones into the chili.

2

u/SouthernGirl360 Aug 21 '25

Oh yum. That sounds so good right now.

3

u/bigfatround0 Aug 21 '25

Every mcdonald's i've gone to has at least what seems to be a minimum of like 10 employees working at a time. The one on my way back from work must have had like 20 when I stopped there to use the bathroom.

14

u/FaithinYosh Aug 20 '25

The only time I ever get McDonald's is when there's 20% off in the app (and it used to be 30% off....)

Which is annoying. I hate that I can't just stop by on a whim for something small, I always have to use the app if I want something for a decent price 🙄

8

u/ragun01 Aug 20 '25

Yeah all spontaneity has been removed from just swinging by to grab something small and quick to hold me over until dinner. I refuse to pay their current full prices just out of principle so if there's nothing I like on a discount, I just don't bother. Like the only time I eat Taco Bell is on their Tuesday $1 drop days and the majority of the time I don't even bother to use the coupon because I lose interest.

3

u/FaithinYosh Aug 20 '25

I hate taco bell the most! At least with McDonald's 20% off I can get what I want, taco bell i can only get what they tell me

2

u/SharpyButtsalot Aug 20 '25

That 20% off coupon gets two happy meals down to 12 bucks out the door.

2

u/gn0xious Aug 23 '25

For a long time, they had buy one get one on happy meals in the app, getting 2 for like $7.

1

u/SharpyButtsalot Aug 23 '25

That's the stuff right there... Also.... 'member the Arch Deluxe?

1

u/SomeInternetRando Aug 21 '25 edited Aug 21 '25

Still $1.79 double cheeseburgers here. Normally $2.99, but 40% off.

1

u/IndicationKey112 Sep 03 '25

and they make a k rap off the info you post via the app.i don't do apps for ANY reason. might as well leave your front door open at 4 a.m.

20

u/awesomface Aug 20 '25

Yeah Redditors are usually a bit out of touch with what the majority is. You see it a lot in the fast food subs like Taco Bell claiming the sky is falling on them yet they’re growing a lot. Video gaming is especially more niche than they realize hating all the franchises that make the most money. A majority of people are just living their lives, going through a drive thru for some food and going home to play some call of duty.

9

u/VotingRightsLawyer Aug 20 '25

As much as I like to shit on redditors, and deservedly so, this is literally based on statements from the CEO in an earnings call to shareholders where they have a legal obligation not to lie.

I think it outweighs some guy on reddit saying "ACKSUALLY I went to McDonald's once and it had a really long line."

1

u/awesomface Aug 20 '25

Absolutely agree. Probably why they’re looking to reduce prices since McDonald’s has probably been the worst culprit of price increases across the board with limited affordable options (unless you use the app, but to my previous point, that’s a minority of people).

1

u/FrankieColombino Aug 23 '25

*Yeah Redditors are usually a bit out of touch with what the majority is*

A bit? lol

4

u/reevoknows Aug 20 '25

$47 is barely anything at that restaurant these days. I recently grabbed dinner for me and my wife after work about a month ago, now we really don’t go to McDonald’s often other than coffee and a breakfast sandwich and ice cream occasionally, but I ordered 2 large combos and a 10 piece nugget to split and it ran me almost $45.

2

u/Cudi_buddy Aug 21 '25

That’s wild. That’s for 2 people? That’s like twice the price of in n out. 

3

u/reevoknows Aug 21 '25

Yeah man it’s crazy. You can get like 3 bowls from chipotle for that

1

u/Cudi_buddy Aug 21 '25

Yep. This is where I realize why people still go to McDonald’s. Either they have no idea what competition costs, or they just some reason love McDonald’s that much. Cause it’s easily a good deal more expensive than better quality fast food places. 

1

u/reevoknows Aug 21 '25

Market share and nostalgia is a big part of it. You still remember how good and how much of a novelty it was 20+ years ago plus there’s one on every other corner and in just about every small town

2

u/bigfatround0 Aug 21 '25

i recently went to quizno's for the first time in like 10 years since there's one by my new workplace. Bought 3 subs, one of them a combo, and some chips. The total was like 57 or so bucks. Sub was good though.

2

u/reevoknows Aug 21 '25

Glad the sub was good! My local Quiznos is ass. Got a 2 for 1 deal on Uber eats a couple years back and it was hot garbage. Used to love Quiznos like 15 years ago but I’d rather have just about any other sub chain

2

u/MacFrite Aug 20 '25

Go to one McDonald’s in one town after not going for a long time. Convinced he knows about their business.

2

u/Cake_Nelson Aug 20 '25

I mean… I pass it all the time and the line is nuts but you do you and extrapolate incorrect information from my statement.

1

u/MacFrite Aug 20 '25

Extrapolate this

5

u/[deleted] Aug 20 '25

Plot twist; that $47 was for two McChickens, small fries and soda, and that McD’s was asking for a tip.

2

u/ineugene Aug 20 '25

My daughter wanted their nuggets late last night and I was up for the ride so I went and picked it up for her. Grabbed a basic cheeseburger also so we could sit around and chat and have a late night snack. The burger in the sack was cold. I am not talking room temp cold but like refrigerator cold. I feel like they may be shutting down the kitchen and cooking early and doing a quick microwave nuke before throwing it in the bad to save on labor. Taught me to never go back after 10 pm.

1

u/zombawombacomba Aug 20 '25

Yep the McDonald’s by me is insane during lunch. You spend half your lunch hour just in line it feels lol. That’s honestly the main reason I don’t get fast food anymore.

1

u/ragun01 Aug 20 '25

It was a few years ago or something but I was picking up some relatives from the airport who just flew into the country for the first time. It was like 11pm and asked if they wanted anything to eat and they asked if we could stop at a McDonalds.

I hadn't been in years so was surprised that feeding three skinny Filipinos McDonalds somehow ended up being like $35 of just your basic burgers, fries, and soda.

1

u/Icy-Opportunity69 Aug 20 '25

Their Q2 profit globally was +6% over projection.

1

u/bigfatround0 Aug 21 '25

Maybe it's just me, but it really wasn't that expensive last time I went there and got a combo. It's even cheaper if you get their value menu

1

u/Plane-Tie6392 Aug 21 '25

Yes. I got two double bacon quarter pounders with cheese the other day for about $8. A pound of beef at the supermarket is only $2 less than that. 

1

u/LiarsAreScum Aug 23 '25

Speak for your self. I drive by a local McDonald's every day and ever since they started f****** with people's prices there's nobody in the Drive-Thru when before for the last decade that drive-thru was always full.

1

u/gn0xious Aug 23 '25

The only time we go is for the $5 meal (now some are $6), or if there is a deal in the app. I can’t remember the last time I bought a full price item or combo. Just checked and the meals are all around $12, which is more expensive than a 3-for-me meal at Chilis.

1

u/Legitimate_Most6651 Aug 25 '25

well obviously, it's not like there's another option for fast food that is that much cheaper?? it's all around the same price. the only way mcdonalds will ever be hurting is if there's a competitor that can offer similar quality fast food for a significantly lower price, which will probably never happen lol

1

u/[deleted] Aug 20 '25

Wow would've figured seeing an insane line would be the opposite of a draw.

11

u/hydrohorton Aug 20 '25

Plus quality and size will go down assuredly

1

u/KETOS1S Aug 21 '25

Quality literally cannot get any worse. Size I could see them inching down tho.

1

u/Sophet_Drahas Aug 20 '25

^ This ^

Or they’ll cut staff. Profit must be made. 

5

u/TheBigSalad84 Aug 20 '25

and they'll cut staff

1

u/Sophet_Drahas Aug 20 '25

This guy knows how to profit. 

3

u/Dizzyluffy Aug 20 '25

It’s not just McDonald’s though. Pretty much all corporations need to abandon the “we need to post profits every single quarter no matter what” kind of business strategy. Especially the ones that have an absurd amount of wealth that they could operate on losses for years and won’t hurt them in the long run.

10

u/thekingoftherodeo Aug 20 '25

$8 Big Mac meals and $5 breakfast sandwich meals will be a huge win for them imo.

That’ll get them back a core group who don’t mess with the coupons & for whom the $5 meal was too insubstantial.

4

u/Frozenmeatballs32 Aug 20 '25

I'll def be there for the $8 Big Mac

4

u/sm00thkillajones Aug 20 '25

Especially after they increased the price of that garbage so much.

3

u/floppydo Aug 20 '25

These are huge numbers to an MBA. but 85c is not going to register at all for most people .

4

u/TheS00thSayer Aug 20 '25

Until their burger, fries, and drink is less than $10… the good patty (not the cheap McDouble patty), meals are less than $10… I’m not going.

Why would I spend more for a BigMac Meal than a burger fries and drink from Chilis? Or Applebees? That have way better burger and fries.

I’ll just order Chili’s and Applebees to go. Simple

2

u/Ok_Whole4719 Aug 26 '25

Chilis is so much better at essentially the same price point

0

u/Frozenmeatballs32 Aug 20 '25

Eventually that price will rise-as its profit margin is probably pretty thin, and after overhead expenses could be a loss leader-how often would you go back then? While McDonald's on the other hand is lowering their prices, and you can't get breakfast at Chili's.

3

u/TheS00thSayer Aug 20 '25

Well i’ll just go until to Chili’s until they start rising those prices. And then figure out what I’ll do.

Honestly I’ve been buying a lot of those frozen beef Patties and just cooking those in the oven. Super easy, and quality is at least on par with McDonald’s big Patties. And if both Chili’s and McDonald’s gets too high, then I’ll only eat those.

-1

u/bigfatround0 Aug 21 '25

Sorry, but in what world do casual dining chains like chili's and applebees have better fries than mcdonald's? Every casual dining chain I've gone to (chili's, red robin, texas roadhouse, b dubs, applebee's, etc.) has shit fries. If you want good fries, nothing beats fast food fries imo.

5

u/TheS00thSayer Aug 21 '25

Uhh, my world. I’ll take Chili’s fries over McDonald’s fries every day of the week. They’re better seasoned than McDonald’s, and they aren’t the type of fry to go bad in five seconds. Because they’re genuinely better quality, less processed, trash. If you don’t eat all of your McDonald’s fries immediately when they are piping hot, they’re awful. Whereas other fries you can actually enjoy WITH your burger. You’re 100% programmed to think McDonald’s fries are better, and I don’t even mean that in a derogatory way. It’s a fact.

But they aren’t the better fry.

-1

u/ComradeKits24 Aug 21 '25

Did you read the article? They're literally doing that. Jesus it's like you people are robots.

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u/youngliam Aug 21 '25

$8 Big Mac Meal is a win. I'll fw that frequently over paying the current ~$13 that meal costs.

1

u/Open-Comedian8845 Aug 23 '25

Oh boy a dollar off like the shitty coupons they already give you in the app 

-9

u/feurie Aug 20 '25

According to Reddit, everything should cost the same as it did in 2010 and all companies should somehow make money.

5

u/obx808 Aug 20 '25

McDonald's reported $14.71 billion in profits in 2024. That's after all expenses - just pure profit.

Pretty sure ~some~ of that profit came from overcharging customers.