McDonald’s plans to introduce a $5 meal deal in the U.S. next month. This move aims to counter slowing sales and customer frustration with high prices.
McDonald’s $5 Meal Deal: Your Solution to Expensive Fast Food!
The deal includes a four-piece McNugget, small fries, a small drink, and either a McDouble burger or a McChicken sandwich. Most areas will offer this deal for $5, according to a person familiar with it. This person wasn’t authorized to discuss the details.
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The month-long deal starts on June 25 and will be advertised nationally. Some stores, like those in California or Hawaii, may charge more due to higher costs, the source said.
McDonald’s didn’t confirm the deal when asked by The Associated Press on Thursday.
However, last month, the company said it planned to increase deals to combat slowing customer traffic in some markets.
“We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising,” McDonald’s said in a statement Wednesday.
The meal deal will significantly discount the included items compared to their list prices. For example, one McDonald’s location in Michigan charged $9.66 for the four items sold individually on Thursday.
Fast food prices have risen dramatically in recent years. This increase is due to higher costs for labor, food, and paper products. Between the first quarter of 2022 and the first quarter of 2024, spending per person per visit at U.S. fast food restaurants rose 25%, from $12 to $15, according to Technomic, a restaurant data firm.
Earlier this year, McDonald’s reported fewer U.S. visits and lower spending from customers earning less than $45,000 per year.
As grocery inflation has slowed, more people are choosing to eat at home, McDonald’s President and CEO Chris Kempczinski said. In the first quarter, fast food traffic was flat or down in many key markets, including the U.S., Canada, and the United Kingdom.
“The consumer is certainly being very discriminating in how they spend their dollar,” Kempczinski said during a conference call with investors. “It may be more pronounced with lower-income consumers, but all income groups are seeking value.”
During the same call, Kempczinski said McDonald’s needed a nationwide deal emphasizing value to keep up with rivals.
Other chains have also reported slowing sales. Last month, Starbucks noted a sharper and faster decline in U.S. consumer confidence than anticipated in the January-March period. Starbucks plans to open its Rewards app to non-members in July, allowing them to take advantage of the deals it offers.