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McDonald’s is working to introduce a $5 value meal in U.S. stores…

Posted on May 10th, 2024 · American Fast Food Music/Events/Other

* McDonald’s is working to introduce a $5 value meal in U.S. stores…

Just trying to keep you guys in the loop…


May 10, 2024

McDonald’s is working to introduce a $5 value meal in U.S. stores to help offset an increasingly challenging environment for consumers, two people familiar with the matter told CNBC.

The people said the $5 meal could include four items: a McChicken or McDouble, four-piece chicken nuggets, fries and a drink. The value meal was first reported by Bloomberg News.

The potential new offering comes at a time when low-income consumers are beginning to pull back on spending, particularly at fast-food brands. Mentions of low-income consumers on company earnings calls are at their highest levels in nearly two years, according to data from Bank of America. Executives from McDonald’s to Wendy’s to Dave and Buster’s have all noted the restraint in spending.

McDonald’s recently reported a mixed first quarter, with U.S. same-store sales slightly missing expectations. Higher prices helped grow average checks, but some consumers pulled back as a result of the steeper costs.

“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending, which is putting pressure on the [quick-service restaurant] industry,” CEO Chris Kempczinski said on the company’s earnings call on April 30.

He added that McDonald’s has to be “laser-focused” on affordability to attract diners.

On the call, Kempczinski said the company is working on a national value deal in the U.S., and the company’s Chief Financial Officer Ian Borden said the U.S. leadership team was working closely with owner-operators in this environment. McDonald’s corporate and franchisees, who run 95% of McDonald’s locations and weigh in on such offerings, are often at odds over promotions that could eat into owners’ profits.

An initial proposal by McDonald’s for the $5 value meal did not clear necessary hurdles, and additional details are now being discussed, according to a person familiar with the process. A second person said Coca-Cola added marketing funds to the equation to make the deal more appealing.

McDonald’s declined to comment to CNBC. Coca-Cola did not immediately respond to a request for comment.

— CNBC’s Amelia Lucas contributed to this article.

4 Comments to “McDonald’s is working to introduce a $5 value meal in U.S. stores…”

  1. Jonah Rein says...

    A few months ago there was a news story about a guy getting a 5 Guys bill for a cheeseburger, ff, soda of $24+

    The cost of food has escalated out of control since Biden was elected president. Same for gas and the list of increases is endless.

    • Rhea G says...

      I agree with you 1000% Right now, economically, politically and socially this country is UPSIDE DOWN!

      Something is very very very wrong with the USA Today. Literally everything costs a fortune. Our foreign policy stinks. We have schmucky kids running around College Campuses dressed in Hamas costumes.

      The craziest one yet, yesterday on Tv I saw a group LESBIANS FOR PALESTINE waiving banners on a college campus. These morons don’t even know, that if they were in GAZA, Hamas would behead them for being gay.

  2. Larry Gross says...

    Franchisees dont want to do this.

  3. Paul Bonsignore says...

    Burger King has also started a $5 meal plan. And Wendy’s just started a $3 breakfast value meal.

    The economy stinks and McDonald’s, BK and Wendy’s unlike the Federal Government sees that there is a big problem.

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