An Illinois man who says he frequently orders a Quarter Pounder with cheese, fries and a Coke has filed a federal antitrust lawsuit accusing McDonald's of using an artificial intelligence pricing tool to recommend menu prices in a way that, the lawsuit alleges, secretly coordinated prices across thousands of U.S. restaurants. Michael Thomas, who lives in DeKalb, says he noticed price differences between McDonald's locations near his home and is now asking a judge to certify the case as a class action on behalf of customers nationwide.
Thomas filed the complaint, Thomas v. McDonald's USA, LLC et al., on October 2 in the U.S. District Court for the Northern District of Illinois, according to PacerMonitor. The suit alleges violations of Section 1 of the Sherman Antitrust Act alongside Illinois consumer protection statutes, and it blames McDonald's pricing system for raising prices across the chain's roughly 14,000 U.S. stores, 95% of which are owned and operated by franchisees. As reported by News4JAX, the complaint describes an information-sharing pricing platform that draws on data from millions of daily transactions to recommend menu prices across thousands of restaurants, and alleges that the tool shares nonpublic sales data with franchisees who might otherwise compete in the same local market.
A Pricing Tool With a Decade-Long History
McDonald's has used some form of an AI pricing tool since at least 2019, according to the same News4JAX report, which notes the company previously collected data and recommended prices to franchisees before adopting the current system. The pricing program recommends what it calls optimal prices for menu items based on store sales, location and competitors' prices, the outlet reports. A McDonald's spokesman said the company provides context and cannot affect restaurant menu pricing, per the report.
Reporting from CNA identifies the tool's developer as data consulting firm Tiger Analytics, which worked with McDonald's corporate management to set rule parameters for menu price recommendations. Former Tiger Analytics employees said McDonald's established specific guidelines, such as excluding soft drinks and ice cream from summer price increases. A September review of the McDonald's app found a 21% price difference for a Big Mac between two company-operated restaurants in Fresno, California, just two miles apart — $5.69 versus $6.89 — according to The Next Web's reporting on the tool. The same outlet reported that the pricing engine cross-references public menu prices from competitors like Wendy's and Burger King and tags individual franchisee locations with localized sensitivity labels, such as “MEDIUM SENSITIVITY to Price,” determined in part by estimated local customer willingness to pay.
Franchisees Describe Pressure to Comply
The lawsuit alleges McDonald's holds significant leverage over its franchisees and can pressure them to follow pricing recommendations, even though the company maintains the tools are optional and do not automate, coordinate or fix pricing. Internal franchisee documents from June 2026 and standards updated in January required store owners to “constructively engage” with approved pricing tools, with McDonald's tracking and logging franchisee price deviations, according to Mint. Five franchisees told reporters they felt corporate pressure to adopt recommended menu prices despite official statements calling the tool optional, per the same report. News4JAX notes that the National Owners Association represents McDonald's franchisees.
That friction has also shown up in McDonald's own earnings calls. During the company's August Q2 earnings call, CEO and Chairman Chris Kempczinski acknowledged that only about 60% to 65% of U.S. restaurants were executing the company's recommended “10 items for under $3” pricing menu, according to Reuters reporting shared by Steve Willmore on Facebook. Kempczinski said implementing the menu requires conversations with franchisees, per News4JAX, and roughly a third of franchisees resisted the corporate pricing guidance meant to lower menu costs amid rising operating expenses, per the Reuters account. News4JAX reports that McDonald's has been experimenting with value strategies in the U.S. and other markets for several years as it tries to win back lower-income consumers, who have reduced their visits to fast-food chains.
Rising Menu Prices and a Company Pushback
McDonald's USA acknowledged in a May 2024 statement that its average U.S. menu prices rose by about 40% between 2019 and 2024, attributing the increase to production costs, according to The Daily Meal.
McDonald's has firmly pushed back on the new lawsuit. The company said the complaint is filled with inaccuracies and that it will vigorously defend itself, according to News4JAX, maintaining that artificial intelligence does not set menu prices at McDonald's restaurants — franchisees do. The lawsuit asks the court to prevent McDonald's from enforcing agreements that restrict competition and seeks damages for the proposed class, News4JAX reports.
Part of a Broader Legal Reckoning Over Algorithmic Pricing
The McDonald's case lands amid a wider federal push against software-driven price coordination. In March 2024, the Department of Justice and Federal Trade Commission filed a joint statement of interest in a hotel-room algorithmic price-fixing case addressing shared pricing algorithms and starting-point recommendations, according to the Federal Trade Commission.
The McDonald's suit suggests legal scrutiny of algorithmic pricing is extending into the fast-food industry.
