McDonald’s has reportedly deployed artificial intelligence to set menu prices at U.S. locations as the company seeks to boost profits.
The popular burger chain is increasingly using AI pricing tools at some restaurants, with algorithms estimating “customer willingness to pay” at each location, according to Reuters, which first reported the practice, which has the potential to backfire by alienating customers who could turn to competitors.
The fast food giant is experiencing lackluster growth amid inflation that has caused low-income customers to cut back on visits, with shares having fallen 22 percent so far this year, the New York Post recently reported.
McDonald’s is using artificial intelligence to help set menu prices across the US and some global markets, a plan that aims to boost profit but risks alienating customers and attracting antitrust scrutiny. READ: https://t.co/9TQ0r55A5q pic.twitter.com/TfmZH4VZ8p
— Reuters Business (@ReutersBiz) September 29, 2026
Reuters cites August screenshots of the pricing engine as well as interviews with multiple sources “with first-hand knowledge of the burger chain’s strategy.”
“McDonald’s pricing engine uses machine-learning algorithms to continually analyze data from millions of daily transactions across McDonald’s nearly 14,000 restaurants and generate what the company calls ‘the optimal price’ at each location for each menu item, from Big Macs to discounted coffee for seniors,” the outlet reported.
According to three franchisees, “The engine has widened existing price differences for the same product between restaurants, including from neighborhood to neighborhood within the same area”
“Screenshots of the interface franchisees use, reviewed by Reuters, show messages including: ‘Your restaurant is showing MEDIUM SENSITIVITY to Price’ based in part on “customer willingness to pay in your area.’ The platform also contains public price information pulled from online menus of nearby restaurants of competitors including Wendy’s and Burger King. Those chains said they do not use AI in pricing decisions,” Reuters states in its report.
As examples, the outlet cites a September price check on the company’s mobile app with a location in Fresno, California, selling the flagship Big Mac for $5.69, with another company-run store two miles away pricing the same item at $6.89, a premium of 21 percent.
Reuters includes the notable caveat that it “could not confirm if the price difference is the result of the price engine’s recommendations or other factors.”
According to the report, the company says that menu prices are at the discretion of franchisees “but five store owners told Reuters the company pressured them to use the AI-pricing tools.”
A McDonald’s spokesperson said that the Reuters story is misleading and that AI does not set menu prices but merely recommends them to franchisees who are free to make their own choices.
“These speculative and uninformed claims attempt to recast a standard business practice as something controversial. AI does not set the price of a Big Mac or any other menu item,” the company spox told the New York Post.
“The use of pricing recommendation tools and analytics is widespread across industries,” the spokesperson added. “The pricing portal is a tool, not a mandate, designed to provide restaurant-specific recommendations to help franchisees deliver value for customers and make informed business decisions.”
The report of Mickey D’s scheme comes amid rising public concern about AI, the proliferation of hyperscale data centers, and warnings that if unchecked, the rapidly evolving technology could pose an existential threat to humanity.
On Tuesday, President Donald J. Trump signed an executive order officially changing AI’s name to “Super Intelligence,” although it is uncertain whether a rebrand is going to diminish the rapidly growing backlash against the technology.
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