McDonald's Extends Popular $5 Value Meal Amidst Growing Customer Return

Monday 22 July 2024 - 17:55

McDonald's has decided to extend its successful $5 value meal promotion across most of its U.S. markets, a move that comes in response to the deal's significant impact in drawing diners back to the chain. This decision follows an internal memo sent to the U.S. system and obtained by CNBC on Monday, revealing that 93% of McDonald's restaurants voted to continue the offer beyond its initial four-week window.

The $5 value meal, which includes a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink, was introduced on June 25. Originally slated to run for about a month, the promotion will now extend through August in many locations, with some still deciding on the extension. This combo offers substantial savings compared to purchasing the items separately.

"Our message is resonating with our millions of customers," wrote Myra Doria, national field president, and Tariq Hassan, U.S. chief marketing and customer experience officer, in the memo. "When our customers are ordering the $5 Meal Deal, they aren’t visiting the competition, and early performance shows this deal is meeting the objective of driving guests back to our restaurants."

The decision to prolong the promotion comes at a time when fast-food chains are employing various deals to counteract declining customer traffic. Many consumers, especially those with lower incomes, are hesitant to spend due to years of inflation-driven price increases. McDonald’s value meal has faced stiff competition from other chains such as Burger King, Wendy’s, Taco Bell, and Starbucks, all offering deals in the $3 to $5 range to attract budget-conscious diners in a fiercely competitive market.

"We must remember that driving guest counts ultimately propels our business and is the key to sustained growth," the memo emphasized.

In May, CNBC reported that Coca-Cola contributed marketing funds to enhance the appeal of the initial value offer for franchisees. Some franchisee advocates have called for continued contributions from McDonald's to ensure the discounted offer remains viable for operators in the long term.

McDonald’s is set to report its earnings on July 29. As the company navigates a competitive landscape and seeks to maintain its customer base, the extension of the $5 value meal demonstrates its commitment to offering appealing deals to its patrons.