(NewsNation) — McDonald’s is cutting the prices of its combo meals in response to growing concerns that its food has become unaffordable for many customers.
According to The Wall Street Journal, McDonald’s and its franchisees will reduce combo meal prices to approximately 15% below the cost of purchasing the items individually. The changes will take effect next month, and prices will vary by location.
“We recognize that consumers’ value perceptions are most influenced by our core menu pricing,” CEO Chris Kempczinski told investors and analysts on August 6, when McDonald’s reported its Q2 earnings. “We’re working closely and collaboratively with our U.S. franchisees on this opportunity, and we’re developing ideas for how we might address this as an entire system.”
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In August, the company expressed concern about continuing declines in traffic from consumers with household incomes of $45,000 or less. Fast food visits by lower-income consumers dropped by double-digit percentages industrywide in the U.S. in the April-June period.
Kempczinski said lower-income consumers are feeling uneasy about tariffs and their impacts and about the employment outlook. McDonald’s is talking with franchisees about ways to reengage those customers, he said.
“Too often, if you’re that consumer, you’re driving up to the restaurant and you’re seeing combo meals priced over $10. And that absolutely is shaping value perceptions in a negative way,” Kempczinski said. “So we’ve got to get that fixed.”
NewsNation affiliate KTLA and The Associated Press contributed to this report.
