The reinstatement of McDonald’s Extra Value Meals this week will be one of those strategic moves that can create a domino effect across the fast food industry as regards pricing. Starting September 8, 2025, the world’s largest fast food chain without counter has brought back a category of menu that has been absent from its offering since 2019, bringing to consumers eight of its most popular meal combinations at around 15 percent cheaper than ordering items separately as also stated here, Good news for McDonald’s fans: fast food chain bringing new value deals to menus starting September 8.
It has been true to the time, when consumers seemed to demand more savings when advertising offers from the fast food chain that once attracted family visits from low-income earners. CEO Chris Kempczinski admitted that the cost of some combo meals is now over $10, saying that eating habits “help shape the negative perception of value.” The lower-income households that feed on revenue below $45,000 have had a secondary impact from this pricing setting, a demographic that continues to lose visits to McDonald’s in years.
Experts in the industry predict competitive response
Mark Wasilefsky, head of restaurant and franchise finance at TD Bank, characterized the revival of the Extra Value Meals of McDonald’s as a “power move” that is most likely to compel the competition into offering similar discounts, perhaps even on the same day. When you look at margin, 15 percent is an incredible discount,” Wasilefsky noted. “That’s a deal that the other chains would have to match across dayparts-breakfast, lunch, and dinner.
Wasilefsky does not expect a price war of sorts, in which the contenders now try to sell cheaper than these deals, for McDonald’s entirely; they will “try to match with as many of their customers coming to their spot as possible,” he said: also. It is designed to change what the consumer considers habit most—and build a few new ones, instead of just entering into the pricing race to the bottom.
The voice is driving value so much greater economic context
Moreover, the renewed value direction was just lucky for the restaurant industry that has been going through a perfect storm of challenges. Nearly 31 percent of increase in food prices since 2019 and close to 23.6 percent of change between 2020 and 2024. Inflation would lay other types of behavior changes in consumers, as now, 78 percent of Americans have considered fast food as a luxury item and 62 percent have reduced their consumption with regard to prices.
It is at this time that heightened ingredient, labor, and operational expenses would pinch the restaurant owners in failing to provide affordability to the baseline customer of the company. Labor costs alone add an enormous burden to the already strained finances of restaurant operations as they’re increasing at an astounding rate of 10 percent each month since April 2021. In Q3 2024, 55 percent of consumers reported that they cut their spending on outside food, while 57 percent said they now eat at home more frequently than pre-pandemic times.
Signs of competitor response already matching
For example, direct signs have so far established Indian belief in his predictions about the responses of the entire industry. Many well-known chains in fast-food introduction or expansion in value programs have included those in 2025. Wendy’s app-based “2 for $7” deal lets customers mix and match with favorites like the Spicy Chicken Sandwich, Dave’s Single burger, and 10-piece Chicken Nuggets.
Among the offerings, Taco Bell has had and will continue featuring Luxe Cravings Boxes for 5, 7, and 9 bucks into early June of 2025. These are $5 Duo and $7 Trio programs, with the $5 option allowing customers to select any two items from selections such as Whopper Junior, Original Chicken Sandwich, or Medium Fries.
That August saw even Domino’s dive into the value fray with its “Best Deal Ever” initiative, which offered up any pizza with unlimited toppings for $9.99. The convergence of these broader industry movements toward value pricing suggests that McDonald’s was, indeed, establishing that chainreaction competitive response anticipated by Wasilefsky.
Strategic implications beyond pricing
McDonald’s strategy is not limited to the discount but involves changing customer behavior. This would generate customer loyalty, even beyond the end of the promotional price, from new customers drawn by the value propositions. Thus, it reflects a sophisticated understanding of consumer psychology under which temporary value perceptions create long-term habits of shopping.
Consumer nostalgia, those combinations that produce familiarity with the McDonald’s ordering experience, also occur with the revivals of Extra Value Meals. The numbering system combo meal became synonymous with the brand’s drive-thru efficiency, and its return is a straightforward answer to customer expectations for clear, uncomplicated savings. UBS analysts noted that nearly half of McDonald’s transactions still don’t involve offers, despite varied promotional efforts, showing big opportunity under the new value menu.
Market implications
The investment analysts are closely watching the impact of this pricing move on McDonald’s competitors. UBS research indicates that renewed emphasis on value from McDonald’s would indeed elicit an impulse for its competitors to dig deeper into discounting. McDonald’s popular $5 Meal Deal example, which was extended through summer 2024 due to its popularity, serves as a classic demonstration of how value offerings can drive traffic and additional purchases.
Oppenheimer is optimistic that these value initiatives would help propel the United States same-store sales growth of McDonald’s to a pace of 2.5% this quarter, potentially rising to 3.8% by late 2025. But the concern remains as to how deep discounting can be sustainable over time; taxpayers spend approximately $818-918 million on each federal holiday, showing how percentage-based discounts can seriously affect revenues.
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