AI Could Be Deciding The Price Of Your Big Mac — And Some CA Customers Are Paying More

As McDonald’s leans on AI to help set its pricing, the cost of a sandwich at the chain’s locations in California can vary by over a dollar for the same item, even when the restaurants are near one another, according to reports.

The fast food giant’s pricing engine looks at data from millions of transactions across almost 14,000 locations to generate an “optimal price” for each item at every restaurant, Reuters recently reported in a story that cited screenshots of the pricing engine and interviews with nine sources with first-hand knowledge of company strategy.

“The engine has widened existing price differences for the same product between restaurants, including from neighborhood to neighborhood within the same area,” Reuters reported, citing three franchisees.

Last month, for example, a Fresno location had a Big Mac priced at $5.69, while another two miles away was selling it for $6.89, according to Reuters, which noted both stores were company-run.

The California Post looked at Fresno area locations as well and found both the M&M McFlurry and the Deluxe McCrispy varied by about 50 cents from one store to another.

“Exactly how much of the difference comes from the AI recommendations versus individual franchisee decisions is unclear,” the Post reported.

The outlet interviewed multiple customers who were aware of the variance in price and had intentionally chosen the cheaper location.

McDonald’s described its pricing portal as “a tool, not a mandate,” according to Reuters, which reported that the company accused the outlet of “speculative and uninformed” reporting. While McDonald’s says franchisees can set their own prices, five restaurant owners told Reuters they were pressured to use AI pricing.

An Ongoing Issue

The chain has been struggling to find the right price point to keep customers in recent years.

The Los Angeles Times reported in late 2025 that McDonald’s was losing low-income households as a core customer base, with rising costs of essentials like beef and salaries forcing the business to increase prices.

Also, last fall, McDonald’s made price cuts to some combo meals in an effort to entice customers turned off by rising costs.

The chain’s U.S. foot traffic has declined year-over-year every month since March, Reuters reported, citing estimates from data analytics firm Placer.ai.