FROM OUR COLUMNISTS
MCDONALD’S DROPS A BOMB ON THE FAST- FOOD INDUSTRY
The Bottom Line: The quick-service restaurant chain’s plan to discount combo meals will extend a value war and put pressure on competitors. That’s exactly what McDonald’s wants to do.
BY JONATHAN MAZE
M cDonald’s in August revealed an effort to convince franchisees to offer more nationwide price points. Company executives then told operators in a series of meetings, and word leaked of exactly what that effort will look like: 15% discounts on eight of the chain’s combo meals, compared to the pricing of the items individually. The fast-food giant was trying to keep the details secret, and even after reports came out the company wouldn’t comment, not even something generic sent over email. Yet it still represents a big bomb dropped in the middle of a fast-food value battle. Privately, several franchisees have told me they believe the effort will work, including those who are generally skeptical of such things. And they also believe it will create enormous pressure on competitors. Specifically, Burger King, Wendy’s and Jack in the Box, which may feel compelled to do something to match what McDonald’s is doing, or risk losing traffic. They’re not wrong. Those chains could have a tougher time doing that. Though the price of a medium McDonald’s combo meal varies, its average nationwide is still under $10, at $9.79, and
the chain plans to price that at $8 starting in November, while making a 15% discount a set standard. By comparison, combo meals for signature items from the other three major burger chains all average more than $10. At Wendy’s, the Baconator combo meal averages $12.72, though that burger, to be fair, is more costly to produce than the others and a Wendy’s medium combo and features a much larger drink than McDonald’s. At Burger King, the Whopper combo averages $10.97. At Jack in the Box, a medium Jumbo Jack combo costs $10.40, on average.
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RESTAURANT BUSINESS OCTOBER 2025
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