McDonald’s will offer its $5 menu in most U.S. markets through December to win back lower-income consumers.
Franchisees have voted on extending Value Meals and around 80% of local stores have voted to extend the contract until December. Voting on extensions is still ongoing, so more locations may be added in the coming weeks.
The value menu offers a McDouble or McChicken sandwich, small portions of fries, four chicken nuggets and a small soft drink for $5.
In the coming weeks and months, owners will also offer local special offers in addition to the benefits package, the company said. The offers will also be available in the McDonald’s app.
“Together with our franchisees, we are committed to keeping our prices as affordable as possible, which is why we are stepping up our efforts with even more ways to save,” said Joe Erlinger, president of McDonald’s in the U.S., in a statement about the extension of the offer into December.
A McDonald’s McDouble cheeseburger, small fries, four chicken nuggets and a small soft drink, arranged in New York, USA, on Monday, June 17, 2024.
Lucia Buricelli | Bloomberg |
The restaurant sector focused on value this summer as companies like McDonald’s, Burger King and even Starbucks tried to attract customers with discount offers. After years of sustained inflation, diners have cut back on their restaurant spending.
After McDonald’s reported declining comparable-store sales in the second quarter, executives told restaurant operators and analysts in July that the company would focus on winning back customers with special offers. They pushed for an extension of the $5 meal plan. The offer ran through the end of August after 93 percent of restaurants agreed to keep it on the menu after the initial four-week run in June and July.
In a memo to the US system obtained by CNBC after the release of the July earnings report, Erlinger said McDonald’s had trouble convincing guests of affordable prices last quarter, adding that he expected “industry and competitive issues” throughout the year. Erlinger He encouraged operators to look ahead and build momentum for next year, adding that “embedding a long-term mindset is critical” to the company’s success.
“Reversing history and restoring our position as a leader in value and affordability is possible, but it won’t happen overnight,” he wrote at the time. “This will happen through sustained and coordinated actions that show the customer we are on their side.”
The $5 menu test has been well received by low-income consumers and sentiment about the company’s value has begun to improve, Erlinger said in the July memo.
