Beyond Burgers: How McDonald’s Is Winning With $5 Deals, Adult Happy Meals, and Pure Pop Culture Power

McDonalds neon light signage — Photo by Joshua Austin on Unsplash

In a world where every penny counts and fast food prices have soared, McDonald’s might seem like an unlikely place to find booming business. We’ve seen studies showing that fast food prices have jumped a significant 33% since before the pandemic. It’s no secret that consumers have noticed, and many have even felt that McDonald’s was starting to seem less like an affordable go-to and more like a luxury.

So, how is the golden arches giant not just surviving, but absolutely thriving? McDonald’s isn’t sitting back; it’s leaning into its strengths with a dynamic strategy. This involves a sharp focus on core menu items, clever marketing, and a huge push into the four D’s: digital, drive-thru, delivery, and development.

They’re leveraging their sheer scale to keep costs down, passing some of that advantage onto customers through revamped value offerings. The company openly addressed price concerns, with the President of McDonald’s USA explaining that franchisees set prices based on their increased costs but work hard to minimize the impact on customers (or “fans” if referring specifically to loyal customers). It’s all about finding that sweet spot between necessary price adjustments and perceived value.

One of their most successful weapons in the value battle has been the nationwide $5 meal bundle. Introduced to directly compete with rivals, this deal offers a McDouble or McChicken, a 4-piece nugget, small fries, and a small drink for just five dollars. And boy, is it working wonders!

Orders including the $5 meal deal contain 12% more food than those without. This isn’t just a win for the average check size; it’s actively fighting the cultural perception that McDonald’s had become too expensive and driving crucial foot traffic back to restaurants. It’s building stronger relationships with customers by reminding them that value is still on the menu.

But McDonald’s isn’t just competing on price; it’s a master of buzz-generating marketing. Remember the adult Happy Meal promotions, Grimace shakes, or the return of the Hamburglar? These initiatives create massive brand conversations and keep the company relevant in a crowded market. And they’ve taken celebrity and pop-culture collaborations to a whole new level.

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They brought back major branded meal deals, starting with the wildly successful Travis Scott Meal in 2020. This viral moment paved the way for partnerships with global music acts like BTS, Saweetie, Cardi B, and Offset, and even groundbreaking collaborations like the Angel Reese meal, tapping into the cultural rise of the WNBA and appealing to Gen Z.

Then there’s the brilliant move with the “A Minecraft Movie” collaboration. Beyond a themed kids’ meal, they offered a more substantial “adult” meal, complete with toys and collectibles. This taps directly into nostalgia and the powerful psychological pull of “completion bias”—the desire to collect the entire set. It turns a simple meal into a sought-after piece of merchandise, leveraging intellectual property that families experience together across generations.

This isn’t just about selling toys; it’s about selling an experience, a connection to fandom, and shared memories. The drive-thru becomes the new toy aisle, fueled by that irresistible whiff of nostalgia and the thrill of the chase, like hoping for a specific plastic Creeper toy you weren’t expecting.

Driving performance behind the scenes are their massive investments in the four D’s. Digital sales now make up over 40% of systemwide sales in their top markets, powered by 175 million loyalty members worldwide. Delivery accounts for a healthy 12-13% of the sales mix, and they’re aggressively increasing unit development goals, aiming for 50,000 stores by 2027.

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McDonalds neon sign — Photo by Oluwakorede Enoch Adeyanju on Unsplash

Their sheer size gives them a powerful cost advantage, securing favorable terms with third-party delivery platforms and suppliers. This scale allows them to invest heavily in technology, like their global business services initiative and loyalty programs, where even slight improvements can translate into significant gains across their over 43,000 locations.

Despite facing industry challenges like rising labor and commodity costs, increased competition, and a shift towards cheaper options, McDonald’s continues to invest strategically. Their commitment to maintaining an investment-grade credit rating and their historical ability to pass on inflationary costs demonstrate a prudent approach that fortifies their business model.

By leaning into value with deals like the $5 bundle, mastering modern marketing that blends celebrity, IP, and nostalgia to create cultural moments, and relentlessly investing in digital and operational efficiency, McDonald’s is proving it knows exactly how to connect with today’s consumer. They aren’t just selling food; they’re selling convenience, value, and a piece of pop culture, ensuring their iconic brand remains a dominant force well into the future.