McDonald’s considers introducing $5 value meal amid soaring food prices


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.