McDonald’s has confirmed it will roll out a limited-time $5 combo meal this summer in hopes of attracting customers who have been turned away by inflation since the fast-food chain’s price hikes.
The Chicago-based company announced it will be introducing a month-long promotion starting June 25th. During the event, customers can choose from four items: either a McDouble or McChicken sandwich, small fries, a small soft drink, and a four-piece. Chicken McNuggets — only $5.
McDonald’s has come under fire for charging as much as $18 for a Big Mac meal and $7.29 for an Egg McMuffin at some locations.
McDonald’s, like its peers, has raised prices by mid-to-high single digits over the past year in response to rising prices for eggs and other ingredients. It also raised prices in California, where the state imposes a $20-an-hour minimum wage on fast-food workers.
McDonald’s spokesperson told the Wall Street Journal The $5 meals are part of a nationally promoted strategy to offer great deals.
“This has been true since our inception and has never been more important than today,” the company said.
The Post has reached out to McDonald’s for comment.
last week, Bloomberg News reported McDonald’s is considering making meals worth $5.
Global restaurant chains such as McDonald’s and Starbucks are seeing low-income customers choosing to eat more meals at home amid the cost of living crisis, and companies are moving them to stores. are under pressure to offer more significant promotions to attract customers.
Some McDonald’s customers reported that stores no longer offer free refills.
McDonald’s, which has significant exposure to low-income consumers, reported last month that its global sales growth had slowed for the fourth straight quarter.
“I think it’s important to recognize that all income groups are looking for value,” CEO Chris Kempczinski said on a post-earnings conference call.
McDonald’s stock was up 0.8% as of midday Wednesday.
McDonald’s missed quarterly profit estimates for the first time in two years as budget-conscious consumers forgo McDonald’s offers and Middle East conflict weighed on the burger chain’s overseas sales.
Global comparable sales growth fell for the fourth straight quarter to 1.9%, and the company said consumers “became more selective with every dollar they spent.”
Analysts had expected a rise of 2.35%, according to LSEG data.
“Consumers have certainly become very discriminatory in how they spend their money, and all income groups are seeing value I think it’s important to be aware of what you’re looking for.”
McDonald’s performance contrasted with that of other fast-food chains, which are focusing on value menus to attract customers who are visiting fewer restaurants.
“We have seen that our relative affordability advantage has declined in some markets,” Kempczinski added.
Restaurant Brands International, which owns Burger King, beat expectations in its quarterly results, and Domino’s Pizza benefited from its pizza offer.
McDonald’s U.S. same-store sales rose 2.5% in the first quarter, well below last year’s 12.6% increase and slightly below expectations for a 2.55% increase.
Like-for-like sales from the company’s international licensees, which account for 10% of total revenue in 2023, fell 0.2%, offsetting strong trends in Japan, Latin America and Europe.
Analysts had expected the sector to rise 0.98%.
with post wire
