Key Takeaways
- McDonald’s new “$5 Meal Deal” kicks off Tuesday as a number of fast-food giants have lowered prices or announced limited-time promotions in recent weeks.
- Fast-food rivals Wendy’s and Burger King have also recently announced plans to lower prices or introduce temporary value deals.
- Companies across fast food and other industries have noted in recent months that consumers have decreased discretionary spending and focused on essentials as inflation has continued.
McDonald’s (MCD) has officially launched its latest attempt to win back price-conscious customers with its “$5 Meal Deal,” along with a number of other promotions set to run through the summer or rest of 2024.
The chain’s plan to roll out the low-cost deal was reported last month, as fast-food giants like Wendy’s (WEN) and Burger King of Restaurant Brands International (QSR) have joined McDonald’s in offering lower-priced options after acknowledging that inflation was impacting sales as consumers pulled back on discretionary spending and focused on essentials.
What McDonald’s Is Offering This Summer, and Why
Starting Tuesday, McDonald’s is offering a number of new deals for a limited time, headlined by the “$5 Meal Deal,” a combination of a McDouble or McChicken sandwich, four-piece Chicken McNuggets, small fries, and a small soft drink.
The fast-food giant is also rolling out a range of region-specific deals and a “Free Fries Friday,” offering a free medium fry with any purchase of at least $1 in the McDonald’s app every Friday through the rest of 2024.
McDonald’s is one of a number of companies—especially in the fast-food space—noting inflation has impacted sales in recent quarters as consumers have become increasingly focused on price and value, spending less on smaller discretionary purchases like fast food.
The price-cut trend has impacted other areas of the economy like retail, with Target (TGT) and Walmart (WMT) recently announcing plans to lower prices on thousands of items as executives noted the stores are feeling the discretionary spending pullback from consumers.
McDonald’s shares are 1.5% lower at $256.43 as of 12:30 p.m. ET Tuesday, and are down more than 13% so far this year.