McDonald's is extending its fan-favorite “$5 meal deal” through the end of the year at most U.S. locations as cash-strapped customers continue to struggle with inflation.
Franchisees were given the vote on whether to extend Value Meals, with about 80% of U.S. markets voting to continue it until the end of December. According to CNBC.
Not all votes have been completed and more stores may choose to extend their contracts in the coming weeks, the media reported.
The menu includes a McDouble or McChicken, four pieces of nuggets, small fries and a small drink fountain, all for just $5.
Because mobile app users typically buy more add-ons like fries, McDonald's plans to offer a host of new perks to its mobile app users to boost loyalty and drive sales.
Mobile customers can enjoy a double cheeseburger for just $0.50 on National Cheeseburger Day, Sept. 18, get a McKrispy Sandwich for just $2 on National Fried Chicken Sandwich Day, Nov. 9, and get 10-piece Chicken McNuggets for just $1 from Nov. 4 through Dec. 2.
The company also plans to offer local discounts from select franchisees.
“We are committed to working with our franchisees to keep prices as affordable as possible, which is why we're focusing on even more ways to save money,” Joe Erlinger, president of McDonald's U.S., said in a statement.
During “Value Summer,” McDonald's extended its $5 meal deal, which launched in June and was originally planned to last only four weeks, through August.
The company has introduced “Free French Fries Friday” for app users, which will run until the end of the year.
McDonald's isn't the only company pushing for value.
Fast-food chains including Burger King, Sonic Drive-Ins, Wendy's, Dunkin' Donuts and Starbucks have engaged in price wars this year and turned to appeal to customers hit by inflation as they struggle to bounce back from disappointing sales.
The Golden Arches are A rare profit missed Sales growth fell for the fourth straight quarter to 1.9% in the April quarter, even though analysts had predicted growth of 2.4%.
The company extended the meal deal through the end of August after reporting second-quarter same-store sales declines in July. About 93% of restaurants voted in favor of keeping the deal on the menu.
The company is currently selling this value set until the end of the year.
After a disappointing earnings report in July, Erlinger said in a note that he expects “industry and competitive challenges” to continue. According to CNBC.
“We can reverse the narrative and reposition ourselves as a leader in value and affordability, but it won't happen overnight,” he wrote in the memo. “It will happen through sustained, concerted actions that demonstrate we are on our customers' side.”
He said sales of meal plans have been strong and have improved the company's value-focused image.
According to analytics firm Placer.ai, the value set has helped drive site traffic to McDonald's restaurants.
The $5 sale began on Tuesday, June 25, which was McDonald's busiest Tuesday of the year, with 8% more foot traffic than the average Tuesday so far this year, according to data from Placer.ai.
Throughout the remainder of launch week, visitor numbers were up at least 5% from the year-to-date daily average, according to the data.
