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McDonald’s says AI does not set menu prices. Its pricing tool provides restaurant-specific recommendations; franchisees decide whether to use them and what prices to charge. The company also says the tool does not set prices for individual customers or change them in real time or by the hour.
What does McDonald’s AI pricing tool do?
McDonald’s describes the tool as decision support for restaurant-level pricing, not an automated price setter. The company says it provides information and that people make the final pricing decisions. In its October 1, 2026 statement, McDonald’s said, “AI does not set the price of a Big Mac or any other menu item.” McDonald’s statement on AI and pricing
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According to the Associated Press, McDonald’s said its AI-enhanced recommendation tool has been used for more than a decade and considers factors including a restaurant’s sales, location, and competitors’ prices. That is a high-level company description reported by AP, not a technical account of the model. The sources do not specify its algorithm, the weight given to each factor, how recommendations are validated, or how much they affect menu prices. Associated Press report on the lawsuit and pricing tool
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Who decides what a McDonald’s restaurant charges?
McDonald’s says franchisees decide whether to use the recommendations and set the prices in their restaurants. AP reported that franchisees own and operate 95% of McDonald’s 14,000 U.S. stores, a U.S.-specific figure in its October 6, 2026 report. The company says its global network exceeds 46,000 restaurants, but that number does not indicate how many use this pricing tool. AP’s October 2026 report McDonald’s October 2026 statement
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Does McDonald’s use dynamic pricing or charge different customers different prices?
McDonald’s says it does not use this pricing tool to tailor prices to an individual customer’s willingness to pay, or to change prices in real time or by the hour. The company’s October 1, 2026 statement says, “McDonald’s does not use dynamic pricing.” This describes the company’s account of its pricing tool; the available sources do not include an independent technical audit of the system. McDonald’s statement
Prices can still differ from one restaurant to another. In an Australian help page dated May 23, 2022, McDonald’s Australia says prices vary by restaurant and lists trading hours, customer traffic, product demand, and services such as drive-through, McCafé, and 24-hour operations as factors. That page concerns Australia and does not document the U.S. pricing tool. McDonald’s Australia: Menu Pricing
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How is the pricing tool different from Dynamic Yield?
McDonald’s has also described AI-driven technology that chooses what to show on digital menu displays or suggests additional items. That is a different function from recommending restaurant-level prices.
| Technology | Purpose and context described | Output and decision authority |
|---|---|---|
| Pricing recommendation tool | Restaurant-level pricing recommendations; AP says McDonald’s identified sales, location, and competitors’ prices as factors. | Price recommendations; McDonald’s says franchisees decide whether to use them and what to charge. McDonald’s AP |
| Dynamic Yield menu personalization | Menu-display choices and item suggestions. McDonald’s’ 2019 announcement cited time of day, weather, traffic, and trending items; it also described suggestions based on a customer’s current selections. | Menu content or product recommendations, not established price-setting. McDonald’s announced the acquisition in 2019; in 2021, Mastercard said it had agreed to acquire Dynamic Yield and that the technology had reached McDonald’s drive-throughs and kiosks in several markets. McDonald’s 2019 announcement Mastercard’s 2021 announcement |
Mastercard’s current restaurant product page describes recommendation logic that can use location, time, weather, product availability, and past purchase history for identified customers. Those are personalization signals for recommendations; they do not establish that Dynamic Yield sets menu prices. Mastercard: Restaurant Personalization Platform
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- From breakfast to dinner, and everything in between, McDonald's has something for everyone.
- McDonald’s gift cards can be used on any menu item including fan favorites like the Egg McMuffin, McNuggets, the Big Mac, and of course our world-famous fries.
What is the lawsuit about?
On October 6, 2026, AP reported that Illinois consumer Michael Thomas had filed a federal antitrust lawsuit alleging that the pricing platform shares nonpublic data among franchisees and facilitates price-fixing. McDonald’s disputed that characterization, saying its optional tools do not automate, coordinate, or fix prices. The allegation and the company’s response are opposing claims in a pending legal dispute, not a court finding. Associated Press report
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- No returns and no refunds on gift cards.
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- From breakfast to dinner, and everything in between, McDonald's has something for everyone.
- McDonald’s gift cards can be used on any menu item including fan favorites like the Egg McMuffin, McNuggets, the Big Mac, and of course our world-famous fries.
- Our burgers are the hottest, juiciest burgers. Ask the Hamburglar, he can’t keep his hands off ‘em!
What is known—and what remains unclear?
- Described by McDonald’s: the tool offers restaurant-specific recommendations, and franchisees decide whether to use them and what to charge.
- Reported by AP as the company’s account: the AI-enhanced tool has been used for more than a decade and considers store sales, location, and competitor prices.
- Not established in the available sources: the model’s technical design, exact data inputs, factor weights, validation process, or measured effect on prices.
- Contested in court: the consumer lawsuit alleges data-sharing and price-fixing facilitation; McDonald’s denies that the tools coordinate or fix prices.
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