A class-action lawsuit has been filed against McDonald’s in the U.S. over its use of AI for pricing
McDonald’s Is Suspected of Artificially Inflating Prices Using AI / Photo: WD Stock Photos / Shutterstock
A class-action lawsuit has been filed against fast-food giant McDonald's in federal court in Chicago. The lawsuit alleges that McDonald's illegally coordinates menu prices between its company-owned and franchised restaurants using an artificial intelligence-based pricing system. Reuters previously reported that McDonald's uses AI to set prices.
Details
The lawsuit was filed on Friday, October 2. Michael Thomas is listed as the plaintiff, but he is also acting on behalf of “other people in similar situations,” according to the document.
According to the lawsuit, the company violated U.S. antitrust laws by colluding with independent franchisees to artificially inflate the prices of goods using algorithms trained on non-public data, SeekingAlpha reports.
On September 30, Reuters reported that McDonald’s uses AI algorithms and analyzes millions of daily transactions at nearly 14,000 of its restaurants in the U.S. to determine menu prices. Approximately 95% of these restaurants are not owned by McDonald’s and are independently operated, according to the lawsuit.
The document quotes a passage from a Reuters article stating that other food service companies are also turning to artificial intelligence to optimize pricing and other operational processes. “Independent businesses should set their own prices,” the complaint states.
On Monday, October 5, McDonald’s called the allegations speculative and unfounded, according to Reuters. “Artificial intelligence does not set the price of a Big Mac or any other item on the menu,” the corporation stated in a statement to Reuters. Franchisees make their own pricing decisions, and the use of pricing recommendation tools and analytics is widespread across various industries, the company asserts.
What about the stocks?
McDonald's shares rose 0.2% in premarket trading on October 6, but are down 23% since the start of 2026.
On October 6, KeyBanc lowered its price target for McDonald's shares from $305 to $280, while maintaining its "buy" rating. KeyBanc's price target implies a 20% increase in the company's stock price relative to its most recent closing price.
The most common analyst recommendation for McDonald's stock is "buy": the stock has 22 "Buy" and "Overweight" ratings, according to MarketWatch. Another 15 analysts covering the stock recommend holding it, while one recommends selling it.
This article was AI-translated and verified by a human editor
