Core Insights - McDonald's is reducing combo meal prices to restore its affordable image amid customer complaints about rising menu costs [3][4][11] - The company has reached an agreement with US franchisees to keep the prices of eight popular combos 15% below the total of individual item prices [1][2] - The average price of a large Big Mac meal is currently $10.53, with some locations charging as much as $18.99 [12] Pricing Strategy - Starting in early September, discounts will be applied to combos including Big Mac, Quarter Pounder with Cheese, Chicken McNuggets, and breakfast sandwiches [4][7] - McDonald's will reintroduce Extra Value Meals, with specific prices set at $5 for Sausage Egg McMuffin and $8 for Big Mac meal [7] - Franchisees are required to maintain these discounts through early next year [7] Market Context - The fast-food chain is responding to a broader trend of declining restaurant traffic, which has dropped 1.7% this year, with fast-food chains seeing a 2.7% decline [15] - The price of Big Mac combo meals has increased by 27% from 2019 to 2024, contributing to customer concerns about affordability [15] - McDonald's is also collaborating with franchisees on a marketing campaign to promote the new pricing deals [16]