McDonald’s Extends $5 Value Meal, Rivals Likely to Follow
McDonald’s has announced that it will extend its $5 value meal until December at most U.S. stores, a move that is likely to be followed by its rivals. The $5 Meal Deal, which includes a McDouble burger or McChicken sandwich, small fries, a four-piece Chicken McNuggets, and a small drink, was introduced in June as a response to a disappointing first quarter.
Why the $5 Meal Deal?
The $5 Meal Deal was introduced in June after a disappointing first quarter that saw fewer U.S. visits and lower spending per order, particularly from customers earning less than $45,000 per year. McDonald’s U.S. President Joe Erlinger stated, "Together with our franchisees, we’re committed to keeping our prices as affordable as possible."
Grocery Price Inflation and Restaurant Sales
As grocery price inflation has slowed, more people are choosing to eat at home. According to the U.S. Census Bureau, U.S. restaurant sales were up slightly in July, but this was largely due to higher menu prices. Adjusted for inflation, restaurant sales fell 0.7% from July 2023, according to the National Restaurant Association.
Rivals Follow Suit
Rivals like Burger King quickly followed McDonald’s with their own $5 meal deals. Burger King recently extended its deal through October. Wendy’s, which already offered a $5 meal deal, started throwing in a free Frosty in June and is now offering a $5 meal deal targeted at college football fans, with no delivery fees every Saturday this fall.
The Impact on Store Traffic
The deals are lifting store traffic. Placer.ai, which uses cell phone data to monitor retail traffic, said U.S. visits to McDonald’s rose 2.4% in June after the $5 meal deal was introduced and have remained elevated ever since. Placer.ai also reported a 12.3% increase in visits to Taco Bell the week of July 29 when it offered free drinks to celebrate the 20th anniversary of its Baja Blast.
Other Deals to Attract Customers
Fast-food restaurants aren’t the only ones offering deals to get customers in the door. Olive Garden recently announced that its Never-Ending Pasta Bowl special — which includes soup or salad, breadsticks, and pasta for $13.99 — will run through Nov. 17. McDonald’s will also offer other deals this fall, including free medium fries every Friday with a $1 minimum purchase and $1 10-piece Chicken McNuggets between Nov. 4 and Dec. 2.
Conclusion
In conclusion, McDonald’s decision to extend its $5 value meal until December is likely to be followed by its rivals. The $5 Meal Deal has been successful in attracting customers and lifting store traffic, and other deals are also being offered to attract customers and increase sales.
Frequently Asked Questions
Q: Why did McDonald’s introduce the $5 Meal Deal?
A: McDonald’s introduced the $5 Meal Deal in response to a disappointing first quarter that saw fewer U.S. visits and lower spending per order, particularly from customers earning less than $45,000 per year.
Q: What does the $5 Meal Deal include?
A: The $5 Meal Deal includes a McDouble burger or McChicken sandwich, small fries, a four-piece Chicken McNuggets, and a small drink.
Q: Will other restaurants offer similar deals?
A: Yes, other restaurants are likely to follow McDonald’s lead and offer similar deals to attract customers and increase sales.
Q: How will the $5 Meal Deal affect McDonald’s sales?
A: The $5 Meal Deal is expected to boost McDonald’s sales and attract more customers to its stores.