Start free trial

TRUE, BUTScope Swap

A per-store price recommender

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

Recorded 30 September 2026. Our ruling means: literally true, materially misleading.

Read the story →

Receipts pack

The evidence file for this verdict

22 receipts: 5 support the claim, 1 contradict it, 16 add context. 3 figures on the record, 3 traced to a quoted receipt.

The receipts

Each source, the line we quote from it, its date and which way it cuts. Free to read and to cite.

  1. 1Supports the claimengadget.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

    Look up an archived copy ↗

  2. 2Supports the claimcnbc.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.

    Look up an archived copy ↗

  3. 3Contradicts the claimcnbc.com ↗

    Reuters could not confirm if the price difference is the result of the price engine's recommendations or other factors.

    Look up an archived copy ↗

  4. 4Contextcnbc.com ↗

    generate what the company calls "the optimal price" at each location for each menu item

    Look up an archived copy ↗

  5. 5Contextrnz.co.nz ↗

    But in recent months the engine has pushed more conservative pricing - including some decreases - causing friction between franchisees and corporate headquarters.

    Look up an archived copy ↗

  6. 6Contextrnz.co.nz ↗

    McDonald's says its franchisees are free to set their own prices, but five store owners told Reuters the company pressured them

    Look up an archived copy ↗

  7. 7Contextdailycaller.com ↗

    which means customers may pay different prices for the same food depending on which location they visit.

    Look up an archived copy ↗

  8. 8Contextrnz.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.

    Look up an archived copy ↗

  9. 9Contextrnz.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.

    Look up an archived copy ↗

  10. 10Contextcnbc.com ↗

    McDonald's has used some form of an AI pricing tool since at least 2019.

    Look up an archived copy ↗

  11. 11Contextrnz.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.

    Look up an archived copy ↗

  12. 12Contextcnbc.com ↗

    the headquarters makes the vast majority of its money from taking a percentage of its franchisees' total revenue

    Look up an archived copy ↗

  13. 13Supports the claimrnz.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."

    Look up an archived copy ↗

  14. 14Supports the claimrnz.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.

    Look up an archived copy ↗

  15. 15Contextrnz.co.nz ↗

    A franchisee document from June reviewed by Reuters shows McDonald's records franchisees' deviations from the recommendations in detail.

    Look up an archived copy ↗

  16. 16Supports the claimrnz.co.nz ↗

    it is particularly important for all Users of the Tool to understand and comply fully with anti-trust and competition laws.

    Look up an archived copy ↗

  17. 17Contextrnz.co.nz ↗

    Some franchisees say the engine recommended large price increases during the pandemic and afterwards, as inflation soared.

    Look up an archived copy ↗

  18. 18Contextrnz.co.nz ↗

    Pushing lower prices to attract more customers and lift sales can boost the corporation's bottom line

    Look up an archived copy ↗

  19. 19Contextrnz.co.nz ↗

    Franchisees, by contrast, have stronger incentives to raise prices to help cover the rising wages, rent and other restaurant expenses

    Look up an archived copy ↗

  20. 20Contextcnbc.com ↗

    uses machine-learning algorithms to continually analyze data from millions of daily transactions across McDonald's nearly 14,000 restaurants

    Look up an archived copy ↗

  21. 21Contextrnz.co.nz ↗

    A Reuters check of prices in September on the McDonald's mobile app showed price differences.

    Look up an archived copy ↗

  22. 22Contextrnz.co.nz ↗

    The pricing portal's terms of service warn that owners "may be competitors of each other"

    Look up an archived copy ↗

Members' extras

What each receipt proves, and what would change our mind.

  • What each receipt above proves, in our words
  • The figures table, each number traced to the receipt that states it
  • The trick behind the claim, explained, with the guide to spotting it
  • What would change our verdict
  • Our call on the record, with its due date

The verdict, the opening and every receipt above stay free. Membership adds our analysis to the evidence file for every checked story.

First membership: 30 days free, then A$89 a year. One introductory trial per customer. Card required; renews annually until cancelled. Cancel before the trial ends to avoid the first charge.