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McDonald's reportedly plans to slash its combo meal prices, according to internal materials viewed by the Wall Street Journal.
McDonald's franchisees have reportedly agreed to keep the cost of eight combo meals 15% below the sum of the prices for the individual items, which would see a combo meal currently priced at $10 dropping to $8.50 under the new discounts. The reported agreement came weeks after McDonald's pressured franchisees, offering to subsidize potential losses but only after accounting for increased traffic brought on by the new deals, sources involved with the negotiations confirmed.
McDonald's is aiming to restore its past image of an affordable option following public complaints from customers that the menu had become too expensive. The company, which is the most popular fast food restaurant in the world, has benefited from low-income consumers opting for it more frequently than middle- and high-income groups, CEO Chris Kempczinski said during a second-quarter earnings report earlier this month.
“Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand,” said Joe Erlinger, head of McDonald’s US business, in an internal message earlier this month.
McDonald's current combos, which include the Big Mac, Quarter Pounder with Cheese, Chicken McNuggets, McCrispy sandwich, Egg McMuffin and breakfast sandwiches, will be discontinued beginning in early September.