McDonald’s Meal Deal photographed in Washington, D.C., on Aug. 26, 2024.
Scott Suchman | The Washington Post | Getty Images
McDonald’s on Tuesday announced that it is expanding its value offerings in a bid to reach price-conscious diners.
Starting Monday, the fast-food giant is bringing back its Extra Value Meals, which were last promoted before the Covid-19 pandemic. Customers will save 15% on the combo meals compared with buying the entree, fries and a drink separately, the company said.
For more than a year, McDonald’s and its rivals have been relying on discounts and deals to lure customers back to their restaurants. Traffic to fast-food chains has been shrinking, fueled by a pullback in spending by low-income consumers. Last summer, McDonald’s rolled out its $5 value meal and extended the promotion past its initial run. It later added a buy one, get one for $1 deal to its menu as well.
The eight combo meals stretch across the McDonald’s menu and include a Sausage McMuffin with Egg; Sausage Egg and Cheese McGriddle; Egg McMuffin; Bacon, Egg and Cheese Biscuit; Big Mac; 10-piece Chicken McNuggets; any Quarter Pounder burger; and any McCrispy Sandwich.
To promote the expansion of its value menu, McDonald’s will sell a Sausage McMuffin with Egg with a hash brown and a small coffee for $5, and a Big Mac with medium fries and a medium soft drink for $8 for a limited time.
The new meals are meant to reach the customers who are not already using McDonald’s mobile app for deals or buying the chain’s existing value menu items, CEO Chris Kempczinski said on CNBC’s “Squawk Box” on Tuesday morning. That’s roughly half of the chain’s customer base.
“Particularly with lower and middle-income consumers, they’re feeling under a lot of pressure right now,” Kempczinski said. “What we see is it’s really a two-tier economy right now.”
On McDonald’s latest earnings conference call in early August, he again underlined the fast-food sector’s reliance on visits from low-income consumers.
“Reengaging the low-income consumer is critical, as they typically visit our restaurants more frequently than middle- and high-income consumers,” Kempczinski said.
McDonald’s has more deals planned for later this year, too. Starting in November, the chain will offer its Sausage, Egg and Cheese McGriddles for $5 and 10-piece Chicken McNuggets meals for $8.
“McDonald’s USA is laser-focused on delivering value and affordability for our customers, and I’m incredibly proud of how our franchisees and teams continue to step up to make it a reality,” McDonald’s U.S. President Joe Erlinger said in a statement Tuesday.
