McDonald’s is set to extend its value offerings and introduce new promotions, with key initiatives stretching through December and into 2025. This strategic move aims to recapture lower-income consumers amid a broader trend of reduced restaurant spending. The company’s efforts reflect an industry-wide focus on affordability as diners adjust to persistent inflation.
The centerpiece of these initiatives is the $5 value meal. This popular offer will continue into December in most U.S. markets. Franchisees have largely supported the extension, with approximately 80% of local markets opting to keep the deal in place.
Voting on these extensions remains ongoing, indicating that additional locations may integrate the deal in the coming weeks. The $5 value meal includes a choice of a McDouble or McChicken sandwich, small fries, a four-piece order of chicken nuggets, and a small soft drink. This bundle provides a comprehensive meal at a competitive price point.
Beyond the primary value meal, McDonald’s will also implement various local promotions. These additional deals are planned for the weeks and months ahead. Many of these offers will be accessible through the McDonald’s mobile application, enhancing digital engagement.
The restaurant sector has observed a significant shift towards value-focused offerings throughout the summer. Companies such as Burger King and Starbucks have also introduced discounted items. This trend emerges as consumers reduce discretionary spending on dining out, following years of consistent inflationary pressures.
McDonald’s reported declining second-quarter same-store sales in July. Following these results, company executives communicated to restaurant operators and analysts a renewed emphasis on attracting consumers through strategic deals. The push for extending the $5 value meal was a direct response to these market conditions.
The initial $5 value meal promotion concluded at the end of August. A substantial 93% of restaurants had agreed to maintain the offer after its introductory four-week run in June and July. This broad adoption underscored the perceived importance of value in the current economic climate.
In a memo distributed to the U.S. system after the July earnings report, McDonald’s U.S. President Joe Erlinger acknowledged the company’s challenges in conveying affordability to diners during the recent quarter. He projected that “industry and competitive challenges” would persist through the remainder of the year.
Erlinger encouraged operators to adopt a long-term perspective. He emphasized that “channeling a long-term mindset is crucial” for the company’s future success. This strategic outlook guides the ongoing extensions and new promotions.
Erlinger further stated, “Reversing the narrative and re-establishing our position as the leader on value and affordability is possible, but it cannot be done overnight.” He added, “It will happen through sustained and coordinated actions that show the customer we’re on their side.” The $5 meal trial specifically demonstrated strong appeal among lower-income consumers, contributing to an improved perception of the company’s value.
In addition to the extended $5 meal, McDonald’s has announced several other national promotions for late summer and fall. These include a 50-cent double cheeseburger available on September 18. A $2 McCrispy sandwich will be offered on November 8.
Another significant deal features a $1 10-piece McNuggets promotion. This offer will be valid once a week between November 4 and December 2. The promotion will be extended through December 30, 2024, exclusively for users of the McDonald’s app.
The McDonald’s app serves as a primary channel for accessing exclusive deals and enhancing customer engagement. For instance, the original price of a 10-piece McNugget is $5.79, making the $1 app-only deal a substantial saving of $4.79. The application offers a convenient way for consumers to manage their orders and redeem rewards.
Traffic and same-store sales have presented challenges for many quick-service restaurant (QSR) brands. In response, restaurants are either expanding existing value offerings or introducing new ones. For example, KFC augmented its $4.99 meal deal, slated to continue through year-end, with new items. Burger King reportedly extended its meal deal into October.
McDonald’s was observed as a “relative latecomer to the 2024 value wars.” Its comparable sales and traffic declined in the second quarter. The $5 Meal Deal launched with only a few days remaining in Q2, meaning its full impact on traffic and sales will be discernible after the Q3 results are reported.
The continued extension of the promotion signifies McDonald’s assessment of its necessity in maintaining competitive parity. Joe Erlinger confirmed the collaboration with franchisees on the value offerings, reiterating the collective commitment to affordability. He stated, “Together with our franchisees, we’re committed to keeping our prices as affordable as possible, which is why we’re doubling down with even more ways to save.”
Inflation data from the Bureau of Labor Statistics indicates that restaurant prices continued to rise. Food away from home costs increased by 4% year-over-year in August. This contrasts with a 0.9% rise for food at home during the same period.
Grocery prices remained flat month-to-month in August, while restaurant prices saw a 0.3% increase. This ongoing divergence in pricing between restaurant and grocery sectors is anticipated to depress consumer traffic in the long term. Data from the Bureau of Economic Analysis showed personal disposable income increased by 0.1% in July, a slower pace than the 0.4% rise in personal consumption expenditure in constant dollars.
The $5 Meal Deal is designed to appeal to consumers facing financial constraints. A comparison by Restaurant Dive, using an arbitrary suburban McDonald’s in the Northeast, illustrated the deal’s value. In that market, the McDouble version of the meal deal was priced at $6, representing a $3.86 saving compared to individual item purchases, a 39% discount rate.
For the McChicken version, the saving was $4.86, or a 49% discount rate. These figures highlight the significant value proposition of the bundled meal. Local deals initially formed McDonald’s strategy in the 2024 value competition, but the brand was noted as being “caught flat footed by competitors” who introduced meal deals earlier in the year. Taco Bell, for example, expanded its value menu with six new items in early January.
Looking ahead, McDonald’s is also preparing for a new McValue platform launching on January 7, 2025. This platform will introduce a “Buy One, Add One for $1” promotion, allowing customers to customize their deals by mixing and matching eligible menu items. This initiative offers flexibility and encourages repeat visits.
The McValue Breakfast selections for the “Buy One, Add One for $1” deal include the Sausage McMuffin, Sausage Biscuits, Sausage Burrito, and Hash Browns. These options provide economical choices for morning meals. The McValue Lunch/Dinner items feature the 6 pc. Chicken McNuggets, Double Cheeseburger, McChicken, and Small Fries.
Furthermore, the existing $5 Meal Deal is slated for extension until next summer of 2025. This indicates its integration as a core component of the broader McValue platform. The consistency of this offering underscores its importance in McDonald’s long-term affordability strategy.
The McDonald’s app is central to accessing current and future promotions. It offers the McDelivery feature, allowing customers to earn exclusive MyMcDonald’s Rewards points with every order. These points can be accumulated and redeemed for free food items across various tiers.
For example, 1,500 points can redeem items such as a McChicken, Hash Brown, Vanilla Cone, or a classic Cheeseburger. Accumulating 3,000 points unlocks options like medium-sized Fries, a Sausage Burrito, a 6-piece Chicken McNuggets, or a large Iced Coffee. Higher tiers offer even more substantial rewards.
At 4,500 points, customers can choose among large-sized Fries, a large Frappé, a Filet-O-Fish, or a Sausage McMuffin with Egg. The highest tier, 6,000 points, provides selections such as a Big Mac, Quarter Pounder with Cheese, a Happy Meal, or a Bacon, Egg, & Cheese Biscuit. The app also features Mobile Order & Pay, enabling ordering for curbside, front counter, or dine-in table service.
Mobile payment options are diverse, including debit or credit cards, Apple Pay, Google Pay, PayPal, and Venmo. The app is positioned as a gateway to numerous exclusive app-only promotions for 2025, promoting continued engagement and offering savings to users.
In terms of new and returning menu items, McDonald’s has several developments. McCrispy Snack Wraps are anticipated in 2025, featuring a warm tortilla filled with chicken meat, shredded lettuce, and cheddar cheese. Chicken Strips are also expected in 2025, and may be used in the creation of these new Snack Wraps.
The fan-favorite McRib returned on December 3 for a limited time. This item consists of seasoned boneless pork dipped in BBQ sauce, topped with onions and pickles, and served on a toasted bun. McDonald’s also introduced a “A Whole Lotta McRib Sauce,” a half-gallon jug of the iconic sauce.
Another recent addition is the McCafé’s Dulce de Leche Frappé, a limited-time offering promoted with Mexican actor Iñaki Godoy. These menu additions aim to refresh the customer experience alongside the value initiatives.
The comprehensive menu at McDonald’s includes a wide array of options across breakfast, lunch, and dinner. For instance, breakfast options include the Egg McMuffin for $7.29 (310 Cal) and the Sausage McMuffin for $6.59 (400 Cal). Breakfast meals, such as the Sausage McMuffin with Egg Meal, are priced at $8.99 (625 Cal).
Burger selections remain a core offering. A Big Mac is priced at $8.39 (590 Cal), a Quarter Pounder with Cheese at $6.39 (520 Cal), and a McDouble at $4.59 (390 Cal). Lunch and dinner meals like the Big Mac Meal are $9.29 (1170 Cal), and a 10 piece Chicken McNuggets Meal is $11.00 (1000 Cal).
Chicken and fish sandwiches feature the McCrispy at $8.19 (470 Cal) and the Filet-O-Fish at $5.50 (390 Cal). For chicken enthusiasts, a 4-piece Chicken McNuggets is $6.49 (170 Cal), while New McCrispy Strips are available for $8.29 (3 pc, 350 Cal) or $9.69 (4 pc, 460 Cal).
Fries and sides include Small World Famous Fries for $3.49 (230 Cal), Medium for $4.19 (320 Cal), and Large for $5.39 (480 Cal). Happy Meals are also available, with a Hamburger Happy Meal priced at $6.32 (475 Cal) and a 4 Piece Chicken McNuggets Happy Meal at $7.99 (395 Cal).
McCafé coffees offer diverse choices, such as a Small McCafé Iced Coffee for $3.89 (150 Cal) or a Small McCafé Caramel Macchiato for $3.19 (260 Cal). These extensive offerings are continuously updated to meet consumer demand and preferences.
McDonald’s continues to navigate a dynamic consumer landscape by focusing on value and strategic promotional activities. The extension of popular deals and the introduction of new menu items demonstrate a responsive approach to current economic conditions and competitive pressures. The company’s reliance on its mobile app is poised to play an increasingly critical role in its engagement with customers and the delivery of its value proposition through 2025 and beyond.
These coordinated actions reflect a commitment to re-establishing leadership in affordability, as outlined by President Joe Erlinger. The strategy aims to build momentum for the coming year by consistently offering tangible savings and new experiences to a broad customer base. This emphasis on sustained value is central to McDonald’s efforts to retain and attract diners in a challenging market environment.
