McDonald’s is making a strategic move to win back lower-income consumers by extending its $5 value meal into December in most U.S. markets. The decision comes after franchisees voted on the extension, with approximately 80% of local markets opting to continue offering the value meal deal. Votes on extensions are still ongoing, which means more locations may be added in the coming weeks.
The $5 value meal includes a McDouble or McChicken sandwich, small fries, four-piece chicken nuggets, and a small soft drink. In addition to the value bundle, McDonald’s owners will also be offering local promotions in the weeks and months ahead. These deals will be available through the McDonald’s app as well.
McDonald’s U.S. President Joe Erlinger expressed the company’s commitment to keeping prices as affordable as possible. He stated, “Together with our franchisees, we’re doubling down with even more ways to save.” This move aims to address the declining second-quarter same-store sales that McDonald’s experienced in July.
The restaurant industry as a whole has been focusing on offering value this summer, with companies like McDonald’s, Burger King, and Starbucks all attempting to entice consumers with discounted offerings. This shift comes as diners have been cutting back on restaurant spending due to persistent inflation.
McDonald’s initially introduced the $5 value meal for a four-week run in June and July. After 93% of restaurants agreed to keep it on the menu, the offer was extended until the end of August. However, with declining sales, McDonald’s executives recognized the need to recapture consumers with deals. In a memo to the U.S. system obtained by CNBC, Erlinger acknowledged the challenges the company faced in selling diners on affordability in the previous quarter. He encouraged operators to focus on building momentum for the upcoming year, emphasizing the importance of a long-term mindset.
While the $5 meal trial performed well among low-income consumers, McDonald’s aims to reverse the narrative and reestablish its position as the leader in value and affordability. Erlinger expressed optimism about improving sentiment around the company’s value. However, he acknowledged that this could not be achieved overnight and would require sustained and coordinated actions to show customers that McDonald’s is on their side.
By extending the $5 value meal and offering local promotions, McDonald’s is taking steps to regain the trust and loyalty of lower-income consumers. This strategic move aligns with the company’s commitment to affordability and its long-term goals. With the ongoing challenges in the industry, McDonald’s is determined to position itself as a leader in value and attract customers back to its restaurants.
