(Reuters) – McDonald’s will roll out its $5 meal deal at select U.S. restaurants from June 25 for a limited time, the burger giant said on Thursday, as fast-food chains ramp up cost-friendly options to boost spending among lower income earners. income groups.
Restaurant Brands International rival Burger King is also considering a $5 ‘Your Way deal’ as companies turn to enhanced offers and promotions to cope with inflation-hit customers who are increasingly choosing to to eat at home.
McDonald’s value deal includes a McDouble or McChicken sandwich, small fries, four-piece Chicken McNuggets and a small soda for $5.
McDouble meal options can cost $6 at select restaurants in Alaska, California, Guam, Hawaii, Nevada, New York (Manhattan only), and Washington.
McDonald’s also brought back its “Free Fries Friday” app, which allows customers to get a free medium fry with a minimum purchase of $1 through the end of 2024.
Picky spending hurt the performance of McDonald’s and KFC parent Yum Brands in the last reported quarter, while promotions boosted sales at Domino’s Pizza.
Disposable income among lower income groups in the US is declining, while menu prices across the food industry have risen over the past year as companies try to mitigate higher raw material and supply chain costs.
In late May, McDonald’s U.S. president Joe Erlinger denounced viral reports of runaway Big Mac prices in an open letter for painting an inaccurate picture of the company.
Meanwhile, the shift to eating at home has accelerated as major retailers like Target, Walmart and Kroger keep prices low on everyday essentials.
(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
