Americans increasingly see fast food as a luxury item.
With costs rising everywhere, people have been taking a closer look at what they spend, and they don’t always like what they see, especially when it comes to fast food. It’s an area known for offering good value, but many Americans no longer see it that way, according to a survey of 2,000 Americans by Lending Tree.
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Three out of four Americans typically eat fast food at least once a week, but most (62%) say they are eating less of it because of rising prices. In fact, 65% of Americans have been shocked by the high price of a fast food bill in the past six months.
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More than three quarters (78%) of consumers see fast food as a luxury because it became more and more expensive.
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In addition, half of Americans say they view fast food as a luxury because it is struggling financially.
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While 67% of Americans agree with fast food should be cheaper than eating at home, 75% say this is not the case.
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Almost half (46%) say the cost of fast food is similar to local restaurantswhile 22% say fast food is more expensive.
Source: Lending Tree
As a casual McDonald’s customer, it was hard to ignore that a $10 bill didn’t cover every combo meal. That made what was a cheap option seem expensive compared to healthier and perhaps tastier choices.
It’s a problem that has hurt McDonald’s sales, and the company has made major changes to address it.
US comparable-store sales fell 3.6% in the first quarter of 2025, according to a McDonald’s earnings release.
That was part of a global challenge for the company that CEO Christopher Kempczinski addressed during his Q1 2025 earnings call.
“Our global compounding sales in the first quarter were down 1%, and while we expected global QSR industry traffic to decline in the first quarter, actual industry traffic was down more than we anticipated in several of our large markets, including the US. In the US, overall QSR industry traffic from the low-income consumer cohort was down nearly double digits from the year-ago quarter,” he said.
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The CEO made it clear he understood McDonald’s had a value perception problem during the chain’s second-quarter earnings call.
“We recognize that consumers’ perceptions of value are most influenced by the price of our core menu. We are working closely and collaboratively with our US franchisees on this opportunity and developing ideas on how we might approach this as a whole system,” he said.
Over the past six months, McDonald’s has been working to change the way consumers perceive its prices. Because McDonald’s stores are franchised, not all locations offered these deals (airports and other outlier locations often do not).
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His resurrection Extra value meals: Starting Sept. 8, 2025, McDonald’s has brought discount combo meals back to the U.S., offering a selection of meals at about 15 percent below the individual price, including a $5 Sausage Egg McMuffin and an $8 Big Mac meal as limited-time options, according to Brand Eating.
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$5 meal deal extended through 2026: The classic package (McDouble or McChicken, fries, 4 nuggets and small drink) was folded into the new McValue menu and expanded by summer 2026marking one of the core value deals underway, FOX 29 reported.
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Launch of McValue platform (from January 7, 2025): This consolidated value menu includes the $5 extended meal deal, Buy one, add one for $1 on select breakfast and lunch/dinner items and others local and app-exclusive offersadded FOX 29.
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The deals helped McDonald’s generate additional business, according to company data and analyst reports.
In the weeks after the $5 meal deal was launched, M Science found that orders with the bundle had 12% higher checks than orders without it. The promotion was more often ordered as an add-on to other items rather than a stand-alone purchase, Retail Dive reported.
“We believe the high percentage of ‘regulars’ in the offer’s customer base could mean some customers are augmenting their standard order with the promotion, rather than replacing the promotion with existing orders,” M Science said in a report shared with Retail Dive. “We believe the increase in average check could help support average check at a time when MCD is trying to become less aggressive on pricing.”
McDonald’s has changed its comparable store sales since its focus on value perception. That’s what Kempczinski talked about during the company’s third-quarter earnings call.
“In the third quarter, McDonald’s reported global comparable sales growth of more than 3.5%, with growth across all segments. Additionally, for the second consecutive quarter, McDonald’s reported global system-wide sales growth of more than 6% in constant currency, reflecting the increasing contribution of new store openings,” he said.
He specifically credited value as part of that change.
“Our performance is anchored in our Accelerating the Arches business strategy and exceptional execution to give our customers the value they want for the food they love. Our combination of delicious menu innovation, exciting marketing and the value of trust and affordability has succeeded in a highly challenged consumer environment and driven traffic share growth in most of our top markets,” he added.
This reversal may also reflect consumers trading down.
“As US consumers tighten their wallets, budget restaurant chains such as McDonald’s, Chili’s and Domino’s are emerging as winners, attracting more customers who switch to cheaper meals,” Reuters reported in November.
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This story was originally published by TheStreet on January 29, 2026, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.
