McDonald's is gradually reclaiming its customer base following a severe public backlash over escalating menu prices, although its primary competitor has managed to inch ahead in the latest sales figures. The fast food behemoth, which historically built its dominance on affordability with offerings like the iconic Dollar Menu, faced significant reputational damage due to years of consistent price increases.
The $18 Big Mac Scandal and Its Aftermath
The tipping point came in 2023 when a Connecticut outlet charged an astonishing $18 for a Big Mac meal, sparking viral outrage across social media platforms. Customers expressed fury, with one notably exclaiming online that the company had 'lost their goddamn minds' as images of the exorbitant receipt circulated widely. This incident severely undermined McDonald's long-standing value proposition.
Strategic Price Cuts Drive Recovery
In response, McDonald's implemented aggressive measures to restore its affordability image. During the summer of 2024, the chain launched a $5 meal deal and collaborated with US franchisees to reduce combo-meal prices. Franchisees, who independently set prices, consented to sacrifice some profitability to enhance affordability, with McDonald's pledging to offset discount losses and monitor pricing structures.
These efforts appear to be yielding results. The company's latest earnings report reveals a 5.7 percent increase in global same-store sales for the quarter ending December 31, surpassing analyst expectations. CEO Chris Kempczinski emphasised that price reductions are successfully attracting more patrons, particularly noting improved engagement with lower-income consumers despite ongoing financial pressures. 'McDonald's is not going to get beat on value and affordability,' Kempczinski asserted during an investor call.
Burger King's Quiet Advancement
Despite McDonald's recovery, Burger King marginally outperformed its rival with same-store sales growth of 5.8 percent, substantially exceeding the 3.7 percent forecast by analysts. Restaurant Brands International, Burger King's parent company, reported quarterly earnings and revenue that beat projections, fuelled by robust international expansion.
Consistent Value Strategy
Burger King has maintained steady $5 two-item and $7 three-item combo meals to appeal to budget-conscious diners. Restaurant Brands Executive Chairman Patrick Doyle highlighted that the chain achieved strong results without resorting to 'deep discounting,' while CEO Josh Kobza noted that consistent value offerings have reduced marketing expenditures.
Ongoing Inflationary Challenges
Both fast food giants continue to grapple with rising input costs. Burger King reported a 20 percent surge in beef prices during 2025, squeezing margins for the company and its franchisees. This pressure could eventually translate to higher consumer prices if inflationary trends persist, posing a potential threat to the affordability strategies both chains are currently emphasising.
The fast food industry remains fiercely competitive, with McDonald's demonstrating resilience through strategic pricing adjustments, while Burger King capitalises on consistent value propositions to secure a slight edge in growth metrics.
