McDonald’s AI-enhanced pricing tool is pushing prices higher, lawsuit claims
A McDonald's fast food restaurant logo sign is seen in New York City, United States, on August 7, 2026. The signboard displays the American chain's brand logotype with the golden arches M emblem. (Photo by Marcin Golba/NurPhoto via Getty Images)
A McDonald’s customer has sued McDonald’s over an artificial intelligence-enhanced pricing tool that the lawsuit claims drove up prices at the fast-food giant’s omnipresent stores.
Big picture view:
The lawsuit, which was filed on Friday, alleges the pricing tool violates antitrust laws by sharing non-public data with its franchisees, some of whom may be competing with each other. It states the AI-powered tool pulls data that the franchisees would not normally share, like store-level sales.
The backstory:
The case was filed on behalf of Michael Thomas, a DeKalb, Illinois, man who told the court that he eats at McDonald’s often and regularly orders a Quarter Pounder with cheese, french fries, and a Coke. Thomas claims he has noticed a price difference among the different restaurants.
What they're saying:
"McDonald’s has built and for years deployed its own information-sharing pricing platform, which draws on data from its millions of daily transactions to set menu prices across thousands of U.S. restaurants," the lawsuit states. "The result is algorithmic price-fixing aimed at customers who are already stretched thin."
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The other side:
McDonald’s responded that the lawsuit was "full of inaccuracies" and vowed to defend itself. The company noted that the pricing tool has been used for more than a decade and pointed out that before using it, the Chicago-based restaurant chain would still collect data and recommend prices to its franchisees.
What they're saying:
"AI does not set menu prices at McDonald’s restaurants – McDonald’s franchisees do," the company said in a statement. "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."
Dig deeper:
The company added that optimal pricing recommendations are based on factors such as a store’s sales and location, along with other factors, including competitors’ prices.
Thomas’ lawsuit countered that McDonald’s holds "significant leverage over its franchisees," who operate about 95% of the chain’s 14,000 U.S. locations, and is able to pressure them into following the recommendations.
The Source: Information for this article was taken from the Associated Press. This story was reported from Orlando.