McDonald's Deploys AI Pricing Engine Across 14,000 U.S. Stores, Raising Antitrust and Franchisee Concerns

McDonald's is using machine-learning algorithms to set menu prices at nearly 14,000 U.S. restaurants, generating per-item "optimal prices" based on customer willingness to pay, according to internal documents and sources reviewed by Reuters. The system has widened price gaps for identical products between nearby stores — a Big Mac costs $5.69 at one Fresno, California location and $6.89 two miles away, a 21% difference. Company documents show McDonald's began requiring franchisees in January to "constructively engage" with approved pricing tools and tracks deviations. Five franchisees said the company pressured them to adopt the recommendations. CEO Chris Kempczinski told investors in August that pricing non-compliance factors into business reviews. The pricing portal's terms warn franchisees "may be competitors" and urge antitrust compliance — language a former FTC commissioner called an acknowledgment of potential legal risk. Yum Brands also uses AI for pricing. U.S. foot traffic at McDonald's has fallen year-over-year every month since March, per Placer.ai.