McDonald’s decision to cut prices in the near future could signal a broader fast food price war, according to the Associated Press, as companies attempt to lure back customers turned off by rising fast food costs.
Beginning Sept. 8, McDonald’s will offer Extra Value Meals, which combine select entrees and sides with a drink. While prices will vary by location, the company said the meals will cost 15% less than ordering those items separately.
There will also be limited time meal deals across most of the U.S. to kick off the promotion.
For years, McDonald’s has seen a steady decline in U.S. customers making less than $45,000 per year. CEO Chris Kempczinski said those customers and others no longer see the company as a good value.
The company’s same-store sales grew 2.5% in the April-June period due mostly to higher prices, but fast food visits by lower-income consumers dropped by double-digit percentages industrywide in the second quarter.
