McDonald’s announces new $5 meal deal. McDonald’s
McDonald’s has faced a decline in sales for the first time in over three years, but the fast-food giant is rolling out new strategies to boost its growth. During the April to June 2024 period, global sales dropped by 1%, with U.S. sales falling 0.7% and international sales down 1.1%. Additionally, the company’s profit decreased by 12%.
The decline in sales has been attributed to a shift in consumer spending habits, with many people becoming more cost-conscious. In response, McDonald’s introduced a $5 meal deal in June, featuring a McDouble or McChicken sandwich, a four-piece order of Chicken McNuggets, small fries, and a small soft drink. This deal has been a hit, especially among lower-income customers who are feeling the pinch of rising food prices.
Given the success of the $5 meal deal, McDonald’s has decided to extend its availability. The deal, which was initially intended to be a limited-time offer, will now be available in 93% of U.S. locations through August, with plans to extend it even further. This move is part of a broader trend in the fast-food industry, as competitors like Burger King, Taco Bell, and Wendy’s also adopt similar value-oriented strategies.
In addition to extending the meal deal, McDonald’s is testing a new burger to attract more customers. Named the Big Arch, this new creation features two beef patties, three slices of melted cheese, crispy onions, slivered onions, pickles, lettuce, and a new "tangy McDonald’s sauce." The Big Arch is currently being tested in select restaurants in Canada and two other international markets. McDonald’s plans to evaluate its performance through the end of 2024 before deciding on a broader rollout.
McDonald’s is also focusing on expanding its McCrispy chicken sandwich to more locations and continuing to reward customers through its MyMcDonald’s Rewards loyalty program. One ongoing promotion offers a free medium order of fries with any purchase of $1 or more, available every Friday until December 27.
The company’s CEO, Chris Kempczinski, emphasized the importance of delivering consistent value and focusing on growth areas like chicken products and customer loyalty. "As consumers are more discriminating with their spending, we are focused on the outstanding execution of delivering reliable, everyday value and accelerating strategic growth drivers like chicken and loyalty,” he said.
