McDonald's

At the consumer level, value perception caps price elasticity, particularly for lower‑income cohorts. 2024–2025 tactics leaned into national value offers to protect traffic.

Still, McDonald’s possesses notable corporate‑level pricing levers: (a) raising the North America royalty rate for new franchisees from 4% to 5% for the first time in nearly 30 years, and (b) contractual royalty step‑ups in major master franchise renewals (e.g., Arcos Dorados at 6.0–6.5% over time).

Mix upgrades via the Best Burger initiative and digital personalization also lift average check without blunt price increases. Risks: sustained consumer trade‑down or aggressive discounting could compress franchisee economics, and political scrutiny could constrain U.S. price actions.