McDonald’s is launching a new limited-time $5 value meal next week as part of its strategy to appeal to cost-conscious customers amidst a backdrop of inflation and criticism over pricing. Despite the increasing costs—like medium fries, which have seen a 44% price hike over five years—the fast-food giant aims to reshape public perception of its menu affordability.
In addition to the upcoming value meal, McDonald’s continues to entice customers with ongoing promotions such as “Free Fries Friday” through its app, where users can enjoy a free medium fry with a minimal $1 purchase until the end of the year. Moreover, in celebration of National French Fry Day on July 13th, app users can indulge in free fries of any size.
Joe Erlinger, president of McDonald’s USA, addressed concerns over cost hikes in a recent blog post, debunking exaggerated claims circulating on social media while emphasizing the company’s commitment to delivering value. “We heard our fans loud and clear—they’re looking for even more great value from us, and this summer that’s exactly what they’ll get,” Erlinger stated.
Local franchisees are also rolling out their own promotions, such as “Buy One Get One for $1” breakfast sandwiches in Memphis and discounted lunch and dinner combos like a Double Cheeseburger and small fries for $3.50.
The move comes amid broader challenges in the fast-food industry, where chains are contending with sluggish foot traffic and escalating operational costs. McDonald’s, like others, has seen significant price increases for popular items like the Big Mac and Quarter Pounder with cheese, driven primarily by rising labor and food costs.
Despite these economic pressures, McDonald’s remains optimistic about consumer engagement and financial performance. The company reported a 1.9% increase in global same-store sales in the first quarter of the year, slightly below analyst expectations but reflective of continued consumer preference for quick dining options amidst fluctuating economic conditions.
As McDonald’s navigates the complexities of pricing and consumer spending habits, its proactive approach with value-driven promotions underscores a commitment to maintaining market leadership and customer satisfaction in a challenging economic environment.