McDonald’s Extends Popular $5 Value Meal Amid Rising Food Costs
McDonald’s has announced that its widely successful “$5 Meal Deal” will remain on menus at nearly all of its U.S. locations through August. This extension comes in response to the promotion’s popularity among customers dealing with increasing food prices.
Initially launched in late June for a limited one-month run, the $5 Meal Deal includes a choice between a McDouble cheeseburger or a McChicken sandwich, small french fries, four-piece Chicken McNuggets, and a small soft drink. According to an internal McDonald’s memo obtained by CNN, the deal has been a hit with customers and has successfully drawn business away from competitors.
The memo revealed that 93% of U.S. McDonald’s locations will continue offering the deal due to its success. The promotion has not only attracted more diners but also encouraged some customers to purchase additional full-priced items, boosting overall sales.
McDonald’s had previously managed to raise menu prices without significant backlash, but the first quarter of this year saw weaker-than-expected sales, partly due to higher food prices affecting consumer behaviour across the fast food industry. The $5 Meal Deal has been instrumental in driving traffic back to McDonald’s restaurants, as confirmed by the memo.
The memo also hinted at the possibility of extending the deal beyond August, though specific financial data was not disclosed. However, a report from third-party analytics firm Pacer.ai indicated that the deal significantly increased restaurant traffic, underscoring its positive reception among McDonald’s patrons.
In response to similar challenges, other major fast food chains like Starbucks, Wendy’s, Taco Bell, and Burger King have also introduced meal deals to attract more customers and boost their sales.
As McDonald’s prepares to release its earnings report on July 29, the continued success of the $5 Meal Deal highlights the company’s strategic efforts to maintain customer engagement and drive sales amid a challenging economic climate.
