The Reuters report behind that line describes a per-store price recommender, and says it could not tie the Fresno Big Mac gap to it.
“McDonald's has been using artificial intelligence to dynamically price menu items, as Engadget summarized a Reuters investigation on September 29, 2026.”
Engadget, summarizing a Reuters investigation into McDonald's pricing engine, 29 September 2026
Reuters describes an engine that analyzes transactions across nearly 14,000 restaurants and recommends 'the optimal price' at each location for each item. McDonald's calls it 'a tool, not a mandate,' and its terms say franchisees are 'always free to determine the final price,' though five owners told Reuters they were pressured to use it.
The twist
The headline example, a Big Mac at $5.69 in one company-run Fresno store and $6.89 two miles away, is one Reuters itself could not tie to the engine. And in recent months the engine has pushed more conservative pricing, including some decreases.
21%the premium on a Big Mac at one company-run Fresno store over another two miles away
14,000McDonald's restaurants whose transactions feed the engine that recommends a price for each store and item
2019the year since when
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Say this in tomorrow's meeting“The Reuters report describes AI suggesting a price per McDonald's store, and nothing in it describes surge pricing. Reuters said it could not confirm the AI caused its own 21% Big Mac example, and says the engine lately pushed some prices down.”
Receipts
Supportsengadget.com: McDonald's has been using artificial intelligence to dynamically price menu items in the US and some global markets, according to a report by Reuters
Supportscnbc.com: a company-run store in Fresno, California sells a Big Mac for $5.69, but another company-run restaurant two miles away sells the same sandwich for $6.89, a 21% premium.
Refutescnbc.com: Reuters could not confirm if the price difference is the result of the price engine's recommendations or other factors.
Contextcnbc.com: generate what the company calls "the optimal price" at each location for each menu item
Contextrnz.co.nz: But in recent months the engine has pushed more conservative pricing - including some decreases - causing friction between franchisees and corporate headquarters.
Contextrnz.co.nz: McDonald's says its franchisees are free to set their own prices, but five store owners told Reuters the company pressured them
Contextdailycaller.com: which means customers may pay different prices for the same food depending on which location they visit.
Contextrnz.co.nz: Its pricing portal is "a tool, not a mandate, designed to provide restaurant-specific recommendations to help franchisees deliver value for customers and make informed business decisions," McDonald's said.
Contextrnz.co.nz: The document also says franchisees are "always free to determine the final price." Reuters reviewed the pricing portal's terms of service in August.
Contextcnbc.com: McDonald's has used some form of an AI pricing tool since at least 2019.
Contextrnz.co.nz: McDonald's said in a statement costs and other factors vary across its stores, and that restaurants even a few miles apart can belong to distinct markets.
Contextcnbc.com: the headquarters makes the vast majority of its money from taking a percentage of its franchisees' total revenue
Supportsrnz.co.nz: Screenshots of the interface franchisees use, reviewed by Reuters, show messages including: "Your restaurant is showing medium sensitivity to price" based in part on "customer willingness to pay in your area."
Supportsrnz.co.nz: The engine has widened existing price differences for the same product between restaurants, including from neighbourhood to neighbourhood within the same area, three franchisees told Reuters.
Contextrnz.co.nz: A franchisee document from June reviewed by Reuters shows McDonald's records franchisees' deviations from the recommendations in detail.
Supportsrnz.co.nz: it is particularly important for all Users of the Tool to understand and comply fully with anti-trust and competition laws.
Contextrnz.co.nz: Some franchisees say the engine recommended large price increases during the pandemic and afterwards, as inflation soared.
Contextrnz.co.nz: Pushing lower prices to attract more customers and lift sales can boost the corporation's bottom line
Contextrnz.co.nz: Franchisees, by contrast, have stronger incentives to raise prices to help cover the rising wages, rent and other restaurant expenses
Contextcnbc.com: uses machine-learning algorithms to continually analyze data from millions of daily transactions across McDonald's nearly 14,000 restaurants
Contextrnz.co.nz: A Reuters check of prices in September on the McDonald's mobile app showed price differences.
Contextrnz.co.nz: The pricing portal's terms of service warn that owners "may be competitors of each other"
Open the Receipts Pack → What each source proves, every figure traced, and what would change our verdict.
Checked by AI at the BS Killer desk · ruled 30 Sept 2026 · How we check →
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