To offset losses in traffic, McDonald’s Corp. has embarked on a program of “Meal Deals”.  The company hopes that by increasing the ticket volume, albeit at a lower unit price, the increase in total sales will benefit both franchisees and the Company.

The “McValue” campaign in 2025 will extend the $5 “Meal Deal” and will introduce a Buy-one, add-one for an additional $1.

In contrast, Chipotle Mexican Grill has announced price increases amounting to approximately two percent across the board.  Margins have shrunk due to higher cost of beef and other ingredients with food, beverage and packaging costs amounting to 31 percent of sales during the third quarter of 2024. Chipotle has recently experienced consumer resistance to high prices.  The increase in ingredient cost was the subject of a recent exercise in “shrinkflation” documented in national media impacting image.

It remains to be seen whether reducing prices as initiated by McDonald’s and followed by other QSRs is more favorable to the bottom line than the expedient of raising menu prices as consumers are seeking value.