McDonald’s executives touted the chain’s $5 Meal Deal during the company’s third quarter earnings call in October, stating it was performing to plan – generating traffic gains among low-income consumers, improving the value perception, and clearing the profitability bar for franchisees.
Still, executives made it clear the chain’s value platform needed to evolve into something more holistic and now we know just what that means. Beginning Jan. 7, McDonald’s will introduce its new McValue menu nationwide, featuring the $5 Meal Deal, exclusive in-app offers, local food and drink deals, and a new Buy One, Add One for $1 offer.
In a statement, McDonald’s USA president Joe Erlinger said the company worked closely with franchisees to create the McValue menu, which offers customers more opportunities to “define value on their own terms.”
“When it comes to value, we know there’s no one-size-fits-all,” he said.
The $5 Meal Deal, which helped the chain gain traffic among low-income consumers for the first time in more than a year, will be extended through the summer of 2025. The deal features the choice of a McDouble burger or McChicken sandwich, small fries, 4-piece Chicken McNuggets, and a small soft drink.
Meanwhile, the new Buy One, Add One for $1 offer allows customers to mix and match their favorite items. The McValue Breakfast Buy One, Add One for $1 menu items include the Sausage McMuffin, Sausage Biscuit, Sausage Burrito, or Hash Browns. The lunch items include a 6-piece Chicken McNuggets, Double Cheeseburger, McChicken, or Small Fries.
"As local small business owners, my fellow franchisees and I are always listening to what our customers want from their neighborhood McDonald's," McDonald’s owner/operator and National Value Chair Cory Watson said in a statement. "No matter the city or the state, they're telling us how important it is for them to find their favorite meals at affordable prices. And we couldn't agree more. That's why we're committed to continuing to serve up great local deals – from special discount pricing on fan-favorite a-la-carte items to unique meal bundles, you can find great prices on iced coffees, soft drinks, cheeseburgers, chicken McNuggets and more. We have great value for everyone, whether you're a party of one or feeding the whole family."
McDonald’s began embracing value in late June with its $5 Meal Deal launch after experiencing a rare same-store sales decline in the second quarter, driven largely by an exodus of lower-income consumers, with whom the chain overindexes. The deal helped turn sales slightly positive in the third quarter with momentum improving into the fourth quarter prior to the chain’s E. coli outbreak.
The company has since committed $100 million toward recovery efforts, including marketing value offerings. Executives also said during the Q3 call that the chain will simultaneously promote full-margin items, like the Chicken Big Mac, to grow check sizes.
“We’re going to do what we need to do to make sure we get the momentum back in the business,” chief executive officer Chris Kempczinski said during the Q3 call.
McDonald’s foray into the value conversation ignited an industry-wide movement toward such offerings. Several chains reported sequential improvements toward the end of Q3 and into Q4 because of their effective value platforms. In October, traffic in the industry turned positive for the first time all year, according to Revenue Management Solutions data.
Contact Alicia Kelso at [email protected]
