With rising living costs having an impact on consumer habits on either side of the pond, even the big corporations are feeling the squeeze.
In Q1 2025, McDonald’s saw its biggest sales drop in five years as low-income customers made fewer visits and spent less on their orders. Middle-income earners also declined to a similar degree, while higher-income earners remained steady in terms of foot traffic and order values.
The impact was felt across its global operations, although the drop-off was particularly pronounced in the US. There, same-store sales fell by an average of 3.6% year-on-year, not including stores that had been open for less than a year.
“We believe McDonald’s can weather these difficult conditions better than most,” said Chris Kempczinski, McDonald’s CEO, in an investor call in May.
“However, we’re not immune to the volatility in the industry or the pressures that our consumers are facing.”
As it tries to woo customers back under the golden arches, McDonald’s US is set to lower its prices across its combo meal options.
Eight meals on the US menu will be 15% cheaper than their constituent parts when bought separately, according to The Wall Street Journal, in changes being introduced from September 2025.
McDonald’s has reportedly said it will financially support US franchisees to cover lost earnings from the incoming price drops.
Meals affected by the change include: the Big Mac, Quarter Pounder with Cheese, Chicken McNuggets, McCrispy, Egg McMuffin and variouss breakfast sandwiches. The discounts will run until at least the beginning of 2026.
From November, both the Sausage, Egg and Cheese McGriddle and 10-Piece Chicken McNuggets meals will enter the menu at $5 and $8 respectively. Big Mac meals will be priced at $8 and Sausage Egg McMuffin meals will come in at $5.
“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 U.S. business, according to The Wall Street Journal.
In an earnings call earlier in August 2025, Kempczinski said: “The single biggest driver of what shapes a consumer’s overall perception of McDonald’s value is the menu board.
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“And it’s when they drive up to the restaurant and they see the menu board…that’s the number one driver. We’ve got to get that fixed.”
Earlier this summer, McDonald’s US reintroduced the Snack Wrap after a near-decade absence.
The returning menu item is thought to be another play for low-income wallets, although it received a negative reception over its use of McCrispy Strips over Chicken Selects. The original US iteration used Chicken Selects, and the UK and Canada versions also retain the meatier Selects in their recipes.
Featured Image Credit: Bloomberg / Contributor/Getty Images
Rachael Davis