Most Americans no longer consider fast food to be a good value, according to a recent Lending Tree survey.
“Seventy-eight percent of consumers view fast food as a luxury because it has become increasingly expensive. Additionally, half of Americans say they view fast food as a luxury because they are struggling financially. This is especially true among Americans who earn less than $30,000 a year (71%), parents with young children (58%), members of Generation Z (58%), and women (53%),” the report showed.
The prices have forced the majority of the 2,000 people surveyed to make changes to their choices about where to eat.
“Although 67% of Americans agree with fast food ought be cheaper than eating at home, 75% say that is not the case. Additionally, nearly half (46%) say fast food restaurants cost similarly to local restaurants, while 22% say fast food is more expensive. When asked what their go-to for an easy, affordable meal was, 56% mentioned preparing the meal at home,” Lending Tree reported.
LendingTree commissioned QuestionPro to conduct an online survey of 2,025 U.S. consumers ages 18-78 from April 1-4, 2024. The survey was administered using a non-probability sample and quotas were used to ensure the sample base represented the general population.
McDonald’s, Taco Bell, and Chipotle have taken steps to address these perceptions, but they have taken very different approaches.
McDonald’s CEO Christopher Kempczinski talked a lot about value during his chain’s earnings calls and admitted that the chain had a perception problem.
“If you’re that consumer, you drive to the restaurant and you see that combo meals can be priced over $10, and that’s absolutely shaping value perceptions and it’s shaping value perceptions in a negative way. So we’ve got to fix that,” he said during the chain’s second-quarter 2025 earnings call.
To change perception, McDonald’s made a number of changes, including:
The chain has also offered app-based promotions and $5 meal deals.
Kempczinski acknowledged the challenges of keeping prices low when costs rise.
“So I think our franchisees recognize that even in the face of continued high input inflation, continued inflation around labor, being disciplined and making sure we are leaders in value and affordability is the foundation,” he added.
Chipotle doesn’t have a tradition like McDonald’s much-lamented $1 menu. Its CEO, Scott Boatwright, doesn’t think it will ever go in that direction.
“I don’t want to do it (a dollar menu),” Boatwright said on Yahoo Finance’s Market Domination. “Let me tell you why. I think the value of our offering is very compelling. You know, in my opinion, our food is worth every penny we ask someone to pay for it. I don’t want to devalue our core offering.”
The chain has also been testing a lower-cost “Happy Hour” in which menu prices would be discounted.
“So we have more work to do on what exactly we’ll launch in the test, but we’re thinking about something that probably costs less than $10,” Boatwright said of the upcoming test. “I think it’s our way to really contribute to the community in a meaningful way and really expand that time slot to bring more customers to the restaurants.”
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Yum Brands’ Taco Bell has always offered a mix of premium and value-priced items. However, its latest value offering combines the two by offering premium items at an affordable price.
The chain launched its Luxe Value Menu on January 22.
“Built on the belief that value should never mean compromise, the Luxe Value Menu offers ten craveable items priced at $3 or less, introducing five bold new innovations, while introducing five fan favorites from the Cravings Value Menu, ushering in the next evolution of value at Taco Bell,” the chain shared in a press release.
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Luis Restrepo, Taco Bell’s chief marketing officer, explained the chain’s thought process behind the new menu.
“The Luxe Value Menu was created with one ambition: to challenge expectations of what value can be. Through extensive fan testing and bold innovation, we created menu items that deliver an elevated experience at an affordable price. This isn’t just a menu update, it’s a new standard for value at Taco Bell and across the industry,” he said.
Chipotle sees value differently than McDonald’s and Taco Bell.Chipotle
The efforts of McDonald’s and Taco Bell have begun to bear fruit, while Chipotle has not had the same level of success.
McDonald’s reports strong global sales in its fourth-quarter earnings release.
Global comparable sales in the fourth quarter increased 5.7%, with positive global comparable guest numbers and strong comparable sales growth across all segments.
Full-year global system sales increased 7% to more than $139 billion, representing growth of $9 billion.
“McDonald’s values ​​leadership is working,” Kempczinski said. “By listening to customers and taking action, we have improved traffic and strengthened our value and affordability scores.”
Taco Bell also had a strong quarter, with sales up 8%, according to Yum Brands’ fourth-quarter earnings release.
The chain increased its sales by appealing to a wide range of customers, according to CEO Christopher Turner’s comments during the chain’s fourth-quarter earnings call.
“If you look at transaction growth, our data would say we’re almost five points ahead of the category. So we’re bringing more consumers on more occasions to our restaurants. That transaction growth was driven by penetration and frequency,” he said.
Taco Bell, he noted, attracted new customers.
“We saw transaction growth across all income bands. We trained more higher-income consumers at Taco Bell. We saw transaction growth with younger consumers. And with consumers with families,” he added.
Chipotle’s efforts have yet to bear fruit and its fourth-quarter results were mixed.
Total revenue rose 4.9% to $3 billion.
Comparable restaurant sales decreased 2.5%.
Operating margin was 14.1%, a decrease from 14.6%.
Restaurant-level operating margin was 23.4%, a decrease of 24.8%.
Diluted earnings per share were $0.25, up 4.2% from $0.24.
Boatwright tried to sell the figures as steps in the right direction.
“Against a dynamic consumer environment, we opened a record number of restaurants globally and increased fourth-quarter and full-year revenue,” he said in the earnings release.
“This momentum will drive our next phase of growth, fueled by our ‘Recipe for Growth’ strategy, which leverages what uniquely differentiates our brand to accelerate transactions and expand our presence globally.”
Related: McDonald’s makes menu changes as meat prices soar
This story was originally published by TheStreet on April 19, 2026, where it first appeared in the Restaurants section. Add TheStreet as a preferred source by clicking here.
