A federal lawsuit accuses McDonald’s of using artificial intelligence to push up menu prices. The company says the claim is wrong and that its franchise owners, not software, set what customers pay.

The suit alleges that McDonald’s AI-enhanced pricing tool violates antitrust law. It argues the tool shares nonpublic data with franchisees that may compete in the same market and blames the system for raising prices at McDonald’s U.S. locations.

The lawsuit was filed on behalf of a single consumer, Michael Thomas of DeKalb, Illinois. It says Thomas noticed price differences between McDonald’s restaurants near his home.

McDonald’s Pushes Back

McDonald’s said the complaint is “filled with inaccuracies” and that it will vigorously defend itself.

“AI does not set menu prices at McDonald’s restaurants – McDonald’s franchisees do,” the company said in a statement.

The company says it has used an AI-enhanced pricing tool for more than a decade. The program determines the optimal price for menu items based on a store’s sales, location, and other factors, including competitors’ prices. McDonald’s says it collected data and recommended prices to franchisees long before it adopted the tool.

Franchisees own and operate 95% of McDonald’s roughly 14,000 U.S. restaurants, so independent business owners, not corporate headquarters, make most pricing decisions.

Pressure on the Fast-Food Customer

The case lands as fast-food chains work to win back lower-income customers whose visits have dropped. The lawsuit will test whether a recommendation tool counts as unlawful coordination or as ordinary market research that owners can follow or ignore.

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