Financing

Just how much cheaper is McDonald’s Under $3 Menu?

The fast-food giant’s operators will lower prices on many of the items on the menu, based on data from Technomic. But some customers point out that the chain’s previous offer was better.
McDonald's
Will McDonald's new Under $3 Menu be cheaper? It's complicated. | Photo courtesy of McDonald's.

McDonald’s on Thursday announced, officially, the company’s newest foray into the value wars, an Under $3 Menu that features many of the chain’s lowest-priced products. That includes a Sausage McMuffin and Sausage Biscuit in the morning and a McDouble and a McChicken in the afternoons.

But will it lead to lower prices for consumers? That may depend on how many items customers get. And where the store is located.

On an individual basis, the company expects that prices on many of these items will be lowered for the offer, which kicks off on April 21, even if they’re already lower than $3. And using data from our sister company Technomic’s Price Pulse tool, many restaurants in many locations around the country will clearly have to lower prices simply to fit in the “under $3” part of the equation.

That is particularly true for the McDouble, where the national average price point is $3.30, according to Technomic.

We also looked at the McChicken, where the average price is $2.81, and the Sausage McMuffin, where the average price is $2.58. In many markets, however, the prices for each of these sandwiches can soar past $4 or even $5. In rural areas and in the south, the price is often well below $3.

McDonald’s plans introductory prices of $2.50 for the McDouble and $1.50 for the Sausage McMuffin, which in each case represents a clear discount from the national average. That’s 80 cents, or 24%, for the McDouble, and $1.08 for the Sausage McMuffin, or 42%.

Even in that case, some stores currently have better deals. We found a few locations in each case where the prices are well under those introductory prices, though in the vast majority of cases those prices will be discounted with the new menu. It’s far more likely that the products will be discounted, and in many cases significantly so.

To McDonald’s, the Under $3 Menu could recall the days of the Dollar Menu, which ran during the Great Recession and helped the chain generate strong sales at a time when customers were seriously cutting back. It also put rivals Burger King and Wendy’s on their heels.

But some customers have recalled that menu, suggesting the new $3 price shows just how much prices have increased at fast-food chains. 

Others, however, recalled a more recent deal. The Under $3 Menu will replace McDonald’s buy-one, get-one for $1. In that case, it could prove difficult for McDonald’s to show this one is better.

Currently, for instance, customers with that deal would theoretically be able to buy two McDoubles for $4.30, based on the national average. 

By pricing those McDoubles at $2.50, then customers will have to pay $5 for those two sandwiches. 

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