McDonald's implements ai-driven dynamic pricing across U.S. stores

McDonald's is rolling out an AI-powered dynamic pricing system across its U.S. locations, enabling real-time price adjustments based on location and demand. The system leverages transaction data from over 13,000 company-owned stores and competitors like Wendy's to set prices for individual locations. In Fresno, California, two McDonald's outlets just two miles apart showed a 21% price difference for the Big Mac, with one priced at $5.69 and the other at $6.89. Similar disparities were observed in New York City, where prices varied by 11%. Starting in January 2026, franchise renewals will require cooperation with AI pricing advisors. The shift reflects a broader trend of AI-driven pricing in traditional retail, following earlier examples like Target's 2019 use of AI to adjust prices based on user location. Walmart plans to deploy electronic price tags in all 4,600 U.S. stores by year-end 2026, with AI capable of real-time pricing based on consumer behavior, though the company has recently limited such applications. Critics highlight concerns about algorithmic transparency and fair pricing as AI adoption grows in physical retail.