McDonald’s considers introducing $5 value meal amid soaring food prices
McDonald’s is reportedly planning to launch a new $5 value meal across its U.S. restaurants as consumers grapple with rising food costs.
The proposed meal would include a choice of either a McChicken or McDouble burger, four-piece chicken nuggets, fries, and a drink.
The move comes as McDonald’s CEO Chris Kempczinski acknowledged the need to be “laser-focused on affordability” after the company’s profits fell short of expectations in Q1 2024.
Fast-food prices have surged 33% since 2019, outpacing grocery inflation of 26%, leading some customers to cut back on restaurant spending.
McDonald’s has raised menu prices more than any other major U.S. fast-food chain between 2014-2024. About 25% of customers earning under $50,000 have reduced fast-food consumption due to cost concerns.
Analysts suggest McDonald’s must cater to lower-income customers who make up a significant portion of its customer base.While franchisees initially rejected the $5 value meal proposal, Coca-Cola has reportedly offered additional marketing funds to make it more appealing.
Competitors like Wendy’s and Burger King already offer similar value deals.Some consumers have voiced frustration over escalating fast-food costs, with one customer joking that a $14 order felt like “fine dining”.
McDonald’s hopes the new value offering can help retain price-conscious diners amid continued food inflation.
sources:
https://fox8.com/news/mcdonalds-could-introduce-a-5-value-meal-reports/
https://www.cnbc.com/2024/05/10/mcdonalds-working-on-5-value-meal.html
https://www.khou.com/article/news/nation-world/mcdonalds-five-dollar-value-meal-reports/507-79df82cc-9e98-4a38-9c21-50de264f30e2
https://www.nbcnewyork.com/news/national-international/mcdonalds-is-working-to-introduce-a-5-value-meal/5402243/
https://www.today.com/video/mcdonald-s-explores-5-value-meal-nationwide-what-s-included-210788933727