McDonald’s Introduces $5 Value Meal to Tackle Inflation and Boost Sales
McDonald’s has unveiled a new $5 value meal aimed at attracting customers amid rising inflation and sluggish sales. Starting June 25, the fast-food giant will offer the “$5 Meal Deal” at US locations for a limited time. The meal includes a choice of a McDouble cheeseburger or a McChicken sandwich, small french fries, a 4-piece chicken nuggets, and a small soft drink.
“We heard our fans loud and clear — they’re looking for even more great value from us, and this summer that’s exactly what they’ll get,” said Joe Erlinger, president of McDonald’s USA, in a press release.
The announcement of McDonald’s latest value meal, first reported by the Wall Street Journal, has prompted competitors like Burger King, Wendy’s, and Starbucks to introduce similar deals to attract budget-conscious diners.
This move comes as McDonald’s faces criticism over perceived price hikes. In response, Erlinger released an open letter countering claims that McDonald’s prices had increased significantly beyond inflation rates. “The average price of a Big Mac in the US was $4.39 in 2019,” Erlinger noted. “Despite a global pandemic and historic rises in supply chain costs, wages, and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%).”
Consumer frustration over higher prices has led to a decline in fast food spending and decreased customer traffic. In an effort to regain customer trust and boost sales, McDonald’s is also highlighting regional promotions by franchisees, such as a “buy one, get one” deal for $1 breakfast sandwiches in Memphis and a double cheeseburger and small fries pairing for $3.50 in Columbus, Ohio.
“Affordable prices and creating memorable moments are what McDonald’s is all about,” said John Palmaccio, a McDonald’s owner and chair of the Operator’s National Advertising Fund. “As small business owners, it’s our responsibility to deliver great value to our local communities when they need it most.”
McDonald’s will release its next earnings report in late July, which will provide further insight into the impact of these new value initiatives on their overall sales performance.
