McDonald's drops more than a 2025 Christmas Grinch meal

With the holidays only days away, fast-food chains have begun rolling out themed promotions, limited-time menu items, and branded merchandise to help customers get into the festive spirit. However, the motivation behind these seasonal releases isn't just spreading holiday cheer; it's about countering shifting consumer behavior and softening demand across the industry.

Economic uncertainty and rising food costs have led consumers to become more cautious of their spending, prompting many to cook at home more often to save money.

This shift contributed to a 1% decline in overall traffic in the food service industry for the quarter ending June 2025, according to Circana. As a result, fast-food chains are now searching for new ways to keep customers engaged and loyal.

While seasonal menus have long been a go-to strategy, many brands are now expanding beyond food by introducing merchandise collections to diversify their revenue sources, keep customers engaged, and boost sales.

Even McDonald's, one of the world's leading fast-food companies and America's favorite chain since its founding in 1854, has not been immune to slowing sales and traffic, especially in the U.S. Growing competition, price increases caused by inflation, and backlash tied to changes in its DEI policies have all contributed to recent challenges. Now, the company is capitalizing on the holidays by tapping into seasonal spending.

McDonald's introduces The Grinch Meal for Christmas 2025

McDonald's (MCD) has partnered with Dr. Seuss's The Grinch to debut "The Grinch Meal," a new limited-time bundle inspired by the classic "How the Grinch Stole Christmas!" movie.

The Grinch Meal includes:

• New Dill Pickle McShaker Fries
• A choice of a Big Mac or 10-piece Chicken McNuggets
• A medium drink
• A pair of holiday-themed Grinch socks in one of four designs
• Grinch-themed Happy Meal packaging

While this marks the first time the U.S. will be getting a taste of The Grinch Meal, it was first introduced last year across select international markets, including Canada, Ireland, Australia, and the U.K. After high demand from American fans, the limited-time meal will be available at participating McDonald's locations nationwide starting December 2.

However, that's not all. McDonald's has also released an exclusive winter collection just in time for the gifting season, featuring apparel, accessories, beanies, socks, slippers, mugs, Christmas décor, and even branded gift wrap, now available through its Smilemakers and Golden Arches Unlimited online stores.

Fast-food chains expand into holiday retail

McDonald's isn't the only fast-food chain diving into merchandise. As Christmas approaches and consumers begin their holiday shopping, several rival chains have launched their own festive collections to capitalize on the busy retail season.

Holiday 2025 fast-food merchandise releases

• Chick-fil-A: Launched a new holiday 2025 collection online and at participating restaurants. (Source: Chick-fil-A)
• Starbucks: Released its annual holiday merchandise lineup along with a new Hello Kitty collaboration, available in stores nationwide. (Source: Starbucks)
• Burger King: Introduced its 2025 BK Advent Calendar, which sold out in less than an hour (Source: Burger King)
• KFC: Unveiled its Holiday Bucket Collection on its online shop (Source: KFC)
• Raising Cane's: Rolled out limited-time holiday ornaments, apparel, and plush toys through its online gear shop (Source: Raising Cane's)

Rising fast-food prices reshape consumer behavior

Fast-food menu prices have increased between 39% and 100% from 2014 to 2024, far outpacing the national inflation rate of 33% during the same period, according to Finance Buzz.

McDonald's prices alone have risen by 100% since 2014, with some menu items more than doubling in price over the last 10 years.

"This poses a significant challenge for restaurants, as home-cooked meals directly substitute demand for dining establishments, translating to reduced revenues and declines in customer traffic," said Coresight Research analyst Sujeet Naik.

More Food Industry News:

• Chick-fil-A tests popular menu idea McDonald’s dropped
• Wendy’s shares plan to stop fleeing customers amid store closures
• Iconic frozen yogurt chain makes comeback after closing 2,650 stores

As menu prices rise and competition intensifies, fast-food chains have accelerated menu innovation and expanded into branded merchandise to diversify revenue streams, not only boosting sales but also turning loyal fans into walking advertisements.

"In response to the decreasing food dollar and the empowered customer, restaurants are turning to innovative business and operating models to grab a greater share of the market," said KPMG Restaurant Segment Leader Paul Fultz and Strategy Leader of Consumer Markets Joel Rampoldt in a study.

In March, McDonald’s introduced the new Restaurant Experience Team and created three new global Category Management teams to drive product innovation.

The efforts are starting to pay off. In the third quarter of fiscal 2025, total company comparable sales increased 3.6% year-over-year, with U.S. sales up 2.4%.

Despite improvement, McDonald's remains cautious.

"We continue to remain cautious about the health of the consumer in the U.S. and our top international markets and believe the pressures will continue well into 2026," said McDonald's CEO Christopher J. Kempczinski in an earnings call. "It's a foundational expectation of our brand to bring consumers through our doors and keep them coming back. And especially in today's difficult macro environment, it's more important than ever."

Related: Starbucks rival adding breakfast to menus nationwide