The restaurant industry has spent the past 18 months exploring ways to reach consumers in a competitive and uneven economy. mcdonaldsThe company, which is scheduled to report earnings after the bell Wednesday, is doubling down on its value message to customers through extra-value meals and snack wraps, which will likely help boost sales this quarter.
But the focus on value has also led to dissatisfaction among some of the chain’s operator base.
On January 1, the company announced new franchise standards for McDonald’s operators that include evaluating restaurants on how they deliver value for money. McDonald’s said owners will still be able to set their own prices, but the standards will still shape and define how franchisees, who operate 95% of McDonald’s restaurants, operate their stores.
A set of carriers has established themselves on their ability to continue to set their own prices.
The National Owners Association, an independent franchisee advocacy group, adopted the Franchisee Bill of Rights in August and distributed it via email to members last month in conjunction with the standards’ effective date, according to a copy of the message seen by CNBC.
The last right in the bill is “the right to set prices without fear of recourse,” which states, “Franchisees have the right, as independent owners and operators, to set restaurant menu prices based on their own business judgment and market conditions. This right exists regardless of national, regional, or local cooperative or franchisor-driven pricing decisions. Franchisees must be able to freely control their pricing strategy without fear of intimidation or diminished support.” McDonald’s or its affiliates. ”
It also enumerates “rights of renewal and transfer,” which give owners “an absolute right to a fair and reasonable opportunity to renew the franchise agreement…subject only to objective and clearly defined approval criteria.”
In December, McDonald’s told operators it would begin valuations as part of an update to its franchise standards. Continued non-compliance may result in penalties and even dismissal.
The company said at the time that the new standards “provide greater clarity to ensure all restaurants deliver consistent and reliable value across the entire customer experience,” the company said at the time, according to a memo seen by CNBC.
In a statement, McDonald’s told CNBC that the business model creates an opportunity for entrepreneurs to run a business “never for themselves, never on their own.” It is our responsibility to ensure that McDonald’s leaders adhere to the standards that have made McDonald’s successful for the benefit of everyone. This includes showing up for our high-value customers, which is a core expectation of the majority of our franchisees.” We understand and serve with pride. ”
Some carriers were outraged by recent changes in Wall Street surveys. In a two-part survey of 20 McDonald’s operators released last month, Kalinowski Equity Research wrote that it asked franchisee contacts whether they supported changes to national franchise standards. For context, McDonald’s said it has approximately 2,000 owner-operators in its U.S. franchise system.
“As it turned out, every franchisee who answered this question answered ‘no’. This is the first time in the more than 20-year history of McDonald’s franchisee surveys that all respondents gave exactly the same answer to a ‘yes’ or ‘no’ question,” Kalinowski wrote.
Kalinowski also had operators quantify their relationship with McDonald’s corporate division on a scale of 1 to 5, with 1 being poor and 5 being excellent. According to the survey, the average response obtained was 1.37, “a quite noticeable decline from the average response of 1.71 in October 2025.”
This isn’t the first time McDonald’s has clashed with some executives. Tensions have surfaced in recent years over the implementation of restaurant rating systems and changes to how restaurant contracts are renewed.
Still, McDonald’s stock rose 5%, making it one of the best performers in what was a terrible year for the restaurant sector in 2025.
Kalinowski’s respondents also rated their business outlook for the next six months on a scale of 1 to 5, with 1 being poor and 5 being excellent. The average response was 2.58, the highest in 11 quarters. Last quarter, CEO Chris Kempczinski said full-year cash flow would be strong for the operator while value investments were being made.
“Throughout the quarter, McDonald’s appears to have done a good overall job of promoting value to quick-service consumers, at least noticeably better than other major quick-service burger concepts,” Kalinowski wrote.
Similarly, peer BTIG recently raised its stock price.
“We expect the changes in value strategy and perception to lead to the company’s most meaningful earnings growth since 2023,” BTIG wrote.
