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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →McDonald’s says AI does not set its menu prices. The company describes an optional tool that makes restaurant-specific pricing recommendations; franchisees decide whether to use them and what to charge. McDonald’s also says the tool does not price items for individual customers or change prices in real time or by the hour.
What the AI pricing tool does—and who sets the price
McDonald’s describes the tool as decision support for individual restaurants, not an automated pricing system. Its October 1, 2026 statement says, “The tool provides information. People make the final pricing decisions.” A recommendation may inform a restaurant’s choices, but it is not itself the price charged.
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That distinction matters because McDonald’s restaurants are not all operated by the same decision-maker. The Associated Press reported on October 6, 2026, that franchisees own and operate 95% of the company’s 14,000 U.S. stores. McDonald’s says franchisees can choose whether to use the recommendations and independently decide their prices.
What information informs recommendations?
According to the company’s description reported by the Associated Press, 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. These are high-level examples, not a complete technical specification.
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McDonald’s has not publicly established in the cited materials the model’s algorithm, the precise data it uses, the weight given to each factor, its objective, or how its recommendations are validated. So it is possible to describe the stated purpose and broad inputs, but not to explain exactly how the system calculates a recommended price.
Does McDonald’s use dynamic or personalized pricing?
McDonald’s says it does not use this pricing tool to charge different customers different prices based on their individual willingness to pay. It also says prices are not changed in real time or by the hour. The company’s October 1 statement puts it plainly: “McDonald’s does not use dynamic pricing.” These are the company’s claims about the tool; they are not an independent technical audit.
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Prices can still differ from one restaurant to another. In Australia, McDonald’s says prices vary by restaurant and lists operating hours, customer traffic, product demand, and services such as drive-through, McCafé, and 24-hour operations as relevant context. That explanation applies to McDonald’s Australia and should not be treated as a specification of the U.S. pricing tool.
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How price recommendations differ from Dynamic Yield
McDonald’s has also used AI-related technology for digital menu personalization. That is a separate function from recommending prices, and the existence of personalized menu displays does not show that prices are personalized.
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| Technology | Purpose and context | Output | Who decides |
|---|---|---|---|
| Restaurant-level pricing recommendation tool | McDonald’s says recommendations take restaurant-specific factors into account; the Associated Press reported that the company cited sales, location, and competitor prices. | Price recommendations for a restaurant; the cited sources do not disclose the calculation method. | Franchisees decide whether to use recommendations and what prices to charge, according to McDonald’s. |
| Dynamic Yield menu personalization | McDonald’s 2019 announcement described digital menu displays responding to time of day, weather, traffic, and trending items. It also described suggestions based on a customer’s current selections. | Menu content and additional-item recommendations, not established price changes. | The sources describe software selecting content or recommendations; they do not establish that Dynamic Yield sets prices. |
McDonald’s announced its acquisition of Dynamic Yield in 2019 as a way to personalize digital drive-through menus. In 2021, Mastercard announced an agreement to acquire Dynamic Yield and said the technology had been deployed at McDonald’s drive-throughs and kiosks in several markets. Mastercard’s current restaurant page describes recommendation logic that can use location, time, weather, product availability, and past purchase history for identified customers. Those descriptions concern menu recommendations and personalization, not evidence that the system changes menu prices.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the 2026 lawsuit alleges—and what is established
On October 6, 2026, the Associated Press reported that consumer Michael Thomas of DeKalb, Illinois, had filed a federal antitrust lawsuit in Illinois. The complaint alleges that the pricing platform shares nonpublic data among franchisees and facilitates price-fixing. Those are allegations in a pending dispute, not findings by a court.
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McDonald’s disputes the suit’s characterization. The company told the Associated Press: “Optional tools are available to franchisees to help them make the best decisions for their businesses and customers, but these tools do not automate, coordinate or fix pricing in any way.” The reporting cited here does not establish that the case has been decided or that either side’s account has been independently proven.
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Sources
- McDonald’s, “Separating Fact from Fiction: AI Does Not Set Prices at McDonald’s”, October 1, 2026.
- McDonald’s, “McDonald’s to Acquire Dynamic Yield”, March 25, 2019.
- Associated Press, “McDonald’s sued over AI-enhanced pricing tool”, October 6, 2026.
- McDonald’s and Mastercard, Dynamic Yield acquisition announcement, December 21, 2021.
- Mastercard, “Restaurant Personalization Platform”, accessed October 7, 2026.
- McDonald’s Australia, “Menu Pricing”, May 23, 2022.
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