McDonald's will extend its $5 value menu through December in most U.S. markets as it looks to win back lower-income consumers.
Franchisees have been voting to extend the value menu offering, and about 80% of local markets have opted to extend the offering through December. Voting on extensions is ongoing, so more locations may be added in the coming weeks.
The value menu offers a McDouble or McChicken sandwich, small fries, four-piece chicken nuggets and a small soda for $5.
In addition to the value package, owners will also offer local promotions in the coming weeks and months, the company said. The offers will also be available on the McDonald's app.
“Together with our franchisees, we're committed to keeping our prices as affordable as possible, so we're doubling down on our efforts with even more ways to save,” McDonald's U.S. President Joe Erlinger said in a statement about the meal extension through December.
A McDonald's McDouble cheeseburger, small fries, four-piece chicken nuggets and a small soda are pictured in New York, U.S., on Monday, June 17, 2024.
Lucia Buricelli | Bloomberg | Getty Images
The restaurant sector was focused on value this summer as companies like McDonald's, Burger King and yet Starbucks He tried to lure consumers with discounted deals. Diners cut back on spending at restaurants after years of persistent inflation.
After McDonald's reported a second-quarter sales decline in July, executives told restaurant operators and analysts that the company would focus on how to win back customers with deals, while pushing for an extension of the $5 meal deal. The offer ran through the end of August after 93% of restaurants agreed to keep it on the menu after its initial four-week run in June and July.
In a memo to the U.S. government obtained by CNBC after the July earnings report, Erlinger said McDonald's had a difficult time convincing diners about affordability in the most recent quarter, adding that he expects “industry and competitive challenges” to continue throughout the year. He encouraged traders to look ahead to build momentum for the year ahead, adding that “channeling a long-term mindset is crucial” to the company’s success.
“It is possible to reverse the narrative and reestablish our position as a leader in value and affordability, but it cannot be achieved overnight,” he wrote at the time. “It will be achieved through sustained and coordinated actions that demonstrate to the customer that we are on their side.”
The $5 meal test performed well among low-income consumers and sentiment around the company's value had begun to improve, Erlinger said in the July memo.
