In an aerial view, a customer walks past a sign as they leave a McDonald's restaurant in San Pablo, California, on April 3, 2023.
Justin Sullivan | Getty Images
McDonald's will extend its $5 value menu beyond its initial four-week window in most of its U.S. markets as the fast-food giant says the offering is driving traffic back to restaurants.
In a memo to the U.S. system obtained by CNBC on Monday, executives wrote that nearly all business units, which encompass 93% of its restaurants, voted to extend the promotion beyond its original end date at the end of this month. The memo said most locations will extend it through August, or plan to vote on whether to do so.
The $5 meal went live on menus starting June 25 and was originally intended to last about a month. It includes a McChicken or McDouble, four chicken nuggets, fries and a drink. The combo costs substantially less than buying those items separately.
“Our message is resonating with our millions of customers,” Myra Doria, national field president, and Tariq Hassan, director of U.S. marketing and customer experience, wrote in the memo. “When our customers order the $5 meal deal, they don’t visit the competition, and early results show this deal is meeting the goal of bringing customers back to our restaurants.”
Bloomberg previously reported on the decision to extend the deal.
The move comes at a time when restaurants are offering deals to boost traffic as consumers, particularly low-income diners, balk at higher prices after years of inflation-driven increases. The meal has faced competition from other chains, including Burger King, Wendy’s, Taco Bell and even Starbucks, which have offered deals ranging from $3 to $5 as companies look to attract price-conscious consumers in a highly competitive environment.
The memo continued: “We must remember that increasing guest numbers ultimately drives our business and is the key to sustained growth.”
Coca-Cola provided marketing funds to make the initial offer more attractive to franchisees, CNBC reported in May. Some franchisee advocates had pushed for the company to make future contributions to make the discounted offering sustainable for operators in the long term.
The company is scheduled to release its results on July 29.
McDonald's declined to comment.
