McDonald’s will extend its $5 value meal into December in most U.S. markets as it looks to win back lower-income consumers.
Franchisees have been voting on extending the value meal, and roughly 80% of local markets have opted to extend the deal into December. Votes on extensions are ongoing, so additional locations may be added in the weeks to come.
The value meal offers a McDouble or McChicken sandwich, small fries, four-piece chicken nuggets and a small soft drink for $5.
Owners will also be offering local promotions in the weeks and months to come, in addition to the value bundle, the company said. Deals will also be available in McDonald’s app.
“Together with our franchisees, we’re committed to keeping our prices as affordable as possible, which is why we’re doubling down with even more ways to save,” McDonald’s U.S. President Joe Erlinger said in a statement about the meal’s extension into December.
A McDonald’s McDouble cheeseburger, small fries, four-piece chicken nuggets, and a small soft drink arranged in New York, US, on Monday, June 17, 2024.
Lucia Buricelli | Bloomberg | Getty Images
The restaurant sector focused on value this summer, as companies including McDonald’s, Burger King and even Starbucks attempted to lure consumers in with discounted offerings. Diners have pulled back on their restaurant spending after years of persistent inflation.
After McDonald’s posted declining second-quarter same-store sales in July, executives told restaurant operators and analysts the company would focus on how to recapture consumers with deals, as they pushed for an extension of the $5 value meal. The offer ran through the end of August, after 93% of restaurants had agreed to keep it on the menu following its initial four-week run in June and July.
In a memo to the U.S. system obtained by CNBC after the July earnings report, Erlinger said McDonald’s struggled to sell diners on affordability in the most recent quarter, adding that he expects “industry and competitive challenges” to continue throughout the year. Erlinger encouraged operators to look ahead to building momentum for next year, adding that “channeling a long-term mindset is crucial” to the company’s success.
“Reversing the narrative and re-establishing our position as the leader on value and affordability is possible, but it cannot be done overnight,” he wrote at the time. “It will happen through sustained and coordinated actions that show the customer we’re on their side.”
The $5 meal trial performed well among low-income consumers, and sentiment around the company’s value had started to improve, Erlinger said in the July memo.