McDonald's tests AI pricing across nearly 14,000 US stores

McDonald's is deploying artificial intelligence to guide menu prices across almost 14,000 restaurants in the United States and select international markets, according to an investigation by Reuters. The news agency reviewed franchisee platform screenshots and interviewed nine people with direct knowledge of the strategy.

The machine learning engine processes millions of transactions, competitor prices pulled from digital menus, and customer purchasing behavior to estimate optimal prices and evaluate price sensitivity by store. Reuters noted that in Fresno, California, a Big Mac cost $5.69 at one company-operated restaurant, while another location about two miles away charged $6.89, reflecting a difference of around 21%. Reuters could not determine whether that specific gap stemmed directly from algorithmic guidance.

The system links to McDonald's NEXT strategy announced in September, which includes an $8,500 million investment to back franchisees, modernise restaurants, and integrate AI. The chain acknowledged client traffic pressures and lingering inflation across the industry. The platform focuses on location-level recommendations rather than individual consumer pricing.

Wider adoption of pricing technology faces growing regulatory scrutiny. In January 2025 and August 2026, the US Federal Trade Commission examined personalised pricing models. In February 2026, the FTC and the Department of Justice sought feedback on algorithmic pricing guidelines, following 2025 antitrust actions in real estate and a September 2026 proposed settlement with Pinnacle over algorithmic coordination.