McDonald’s has decided to prolong its $5 value meal offer until December in most of its U.S. locations, setting a trend that other fast-food competitors are likely to imitate. The company introduced this deal back in June following a lackluster first quarter marked by a decline in U.S. visits and spending per order, particularly among customers with an annual income below $45,000. The $5 Meal Deal comprises a McDouble burger or McChicken sandwich, small fries, a four-piece Chicken McNuggets, and a small drink.
McDonald’s U.S. President, Joe Erlinger, stated on Thursday, “Together with our franchisees, we are dedicated to keeping our prices as budget-friendly as feasible.” The decrease in grocery price inflation has led more individuals to opt for eating at home. Despite a slight increase in U.S. restaurant sales in July, as indicated by the U.S. Census Bureau, much of this incline was due to higher menu prices. Adjusted for inflation, restaurant sales actually dropped by 0.7% since July 2023, according to the National Restaurant Association.
Competitors like Burger King wasted no time in mirroring McDonald’s move by launching their $5 meal deals, with Burger King recently extending its promotion through October. Wendy’s, already offering a $5 meal deal, sweetened the pot by including a complimentary Frosty starting in June and now presents a targeted $5 meal deal for college football enthusiasts with no delivery charges every Saturday this autumn.
These promotions are proving successful in attracting more foot traffic to stores. Placer.ai, a data analytics firm using cell phone data to monitor retail traffic, noted a 2.4% increase in visits to McDonald’s in June after the $5 meal deal was launched, and foot traffic has remained consistently high ever since. The firm also observed a 12.3% surge in visits to Taco Bell during the week of July 29 when the chain celebrated the 20th anniversary of its Baja Blast by offering complimentary drinks.
Beyond fast-food chains, various establishments are also offering enticing deals to draw in customers. Olive Garden, for example, has extended its popular Never-Ending Pasta Bowl special, featuring soup or salad, breadsticks, and pasta for $13.99, until November 17.
McDonald’s plans to roll out more discounts this autumn, including complimentary medium fries every Friday with a minimum $1 purchase and $1 10-piece Chicken McNuggets between November 4 and December 2.