McDonald’s sales drop, so chain extends $5 meal deal, eyes new burger
If you like the taste – and the price – of McDonald’s latest bargain combo, the $5 Meal Deal, you are in luck. The fast-food giant plans to keep it on the menu for awhile.
In June, McDonald’s began offering the limited-time $5 Meal Deal, which comes with a McDouble or McChicken sandwich, a four-piece order of Chicken McNuggets, small fries and a small soft drink.
The special combo served as a response to customers who remained concerned about the increased cost of fast food. McDonald’s had faced some backlash over price increases – including reports that one McDonald’s at a Connecticut rest stop was charging $18 for a Big Mac combo meal.
McDonald’s now plans to keep the $5 Meal Deal around longer after sales of the combo have exceeded expectations and approval from lower-income customers – those hit hardest by increased food prices – have helped shift “sentiment towards the brand around value and affordability,” McDonald’s USA President Joseph Erlinger said Monday during a call about the company’s quarterly financial performance, according to a transcript from S&P Global Market Intelligence.
Most of its U.S. restaurants (93%) will have the deal on the menu into August, and the company is working to extend the deal even longer, Erlinger said.
That value meal strategy also has been adopted by competitors such as Burger King, Taco Bell and Wendy’s.
Pancakes aplenty:IHOP is bringing back its all-you-can-eat pancake deal for a limited time: Here’s when
McDonald’s sales decline for first time since 2020
The $5 Meal Deal extension comes as McDonald’s reported a decline in sales for the first time in more than three years.
Deal-conscious consumers staying away from the restaurant chain in the April-to-June 2024 period contributed to a 1% decline in global sales, the company reported Monday. It’s the first decline in global sales for McDonald’s since the fourth quarter of 2020, a year in which the U.S. economy had its sharpest annual drop since 1946.
Sales in the U.S. fell 0.7% during the second quarter of 2024, while international sales fell 1.1%, the company said. Profit fell 12%.
McDonald’s testing new burger
In addition to keeping the $5 Meal Deal on the menu, McDonald’s is also testing its biggest burger yet. Called the Big Arch, the sandwich is currently sold nationally in Portugal and will launch nationally in Canada and Germany during August, the company says.
The Big Arch has two Quarter Pounder-sized beef patties, three slices of melted cheese, crispy onions, slivered onions, pickles, lettuce, and a new “tangy McDonald’s sauce,” McDonald’s chairman and CEO Chris Kempczinski said Monday. The company plans to continue its tests through the end of 2024 before offering it in more markets, he said.
“Our team of chefs from around the world have created a more satiating burger to meet customer demand and to deliver on our ongoing commitment to menu innovation,” the company said in a statement to USA TODAY. “We’ll be testing this burger in a few markets this year this summer, ensuring that it has universal appeal.”
Good news for McCrispy chicken sandwich fans
McDonald’s is also expanding the availability of its McCrispy chicken sandwich to more markets. And expect more perks for members of its MyMcDonald’s Rewards loyalty program, like with its ongoing deal for a free medium order of fries on Fridays with any purchase of $1 or more – a deal that runs through Dec. 27.
“As consumers are more discriminating with their spend(ing), we are focused on the outstanding execution of delivering reliable, everyday value and accelerating strategic growth drivers like chicken and loyalty,” Kempczinski said.
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