McDonald's Revamps Meal Deal As QSRs Fight Over Cash-Strapped Consumers
About six months ago, McDonald's launched a meal deal targeting working-class and middle-class customers who could no longer afford soaring Big Mac prices due to the inflation storm sparked by failed 'Bidenomics.' The meal deal ignited a value menu war with other major quick-service restaurants. Now, the burger chain is planning a complete overhaul of its value menu in early 2025.
A press release from MCD on Friday morning stated the new McValue menu, consisting of $5 meal deals, will launch on January 7.
The "highly anticipated new value platform" will unlock value for working poor customers nationwide by offering "current fan-favorites like the $5 Meal Deal, exclusive in-app offers, and local food and drink deals – plus, a brand new Buy One, Add One for $1 offer on popular items for breakfast, lunch and dinner," MCD explained.
Joe Erlinger, President of MCD USA, wrote in a statement, "When it comes to value, we know there's no one-size-fits-all. We've worked closely with our franchisees to create a new platform that will let our customers define value on their own terms," adding, "From deals on their personal go-to order to universal favorites like the $5 Meal Deal, we're excited to give fans more ways to save every time they visit one of our restaurants."
Bloomberg noted, "McDonald's new value format will replace another platform with items sold for $1 to $3 that launched in 2018. These days, items on the lower end of the range are hard to come by, following inflation-fueled price increases."
In October, MCD Chief Executive Officer Chris Kempczinski told the audience at the Boston College Chief Executives Club that challenging macroeconomic headwinds will persist for low-income customers.
"We're starting to talk about 2025, and my message to our teams has been: 'We need to be preparing for another challenging year,'" Kempczinski told the audience, adding, "We need to be making sure that we've got a really strong value proposition in all of our markets."
In markets, MCD shares have failed three times to break above $300 handle...
MCD's reintroduction of the value menu earlier this year directly responded to sluggish US sales as cash-strapped consumers dialed back on pricey Big Macs.