McDonald's $5 meal deal: More details reported in plan to lure customers
FILE - A sign stands outside of a McDonalds restaurant February 9, 2009, in San Francisco, California. (Photo by Justin Sullivan/Getty Images)
CHICAGO - McDonald’s is launching a new $5 meal deal promotion in the U.S. to help lure in customers deterred by rising fast food prices.
The restaurant chain’s new deal is scheduled to begin on June 25 and will last only about a month, according to the Wall Street Journal, citing internal emails. The $5 meal will include a McChicken or McDouble, four-piece chicken nuggets, fries and a choice of drink.
Bloomberg first reported last week that McDonald’s was planning to launch such a promotion, which required approval from franchise owners. Fast food restaurants have seen sales dip due to inflation driving more customers to eat at home.
McDonald’s did not specifically confirm the $5 deal, but in an email to FOX Television Stations, it noted the importance of "meaningful value" for its customers.
"We know how much it means to our customers when McDonald’s offers meaningful value and communicates it through national advertising," McDonald’s USA said. "That’s been true since our very beginning and never more important than it is today."
The company also shared a statement from John Palmaccio, a McDonald’s franchise owner/operator and Operators National Advertising (OPNAD) fund chair, who noted that "great value and affordability have always been a hallmark of McDonald’s brand, and all three legs of the stool are coming together to deliver that at a time when our customers really need it."
Currently, a McChicken sandwich, featuring a breaded chicken patty, shredded lettuce, and mayonnaise, costs $5.59 at a McDonald's in Times Square, according to the New York Post.
McDonald’s works to combat slower fast food traffic
The new $5 meal deal is part of an overall effort by McDonald’s to step up deals and value messaging to combat the slowing sales.
In April, the burger giant said inflation-weary customers were eating out less often in many big markets. In the first quarter, fast food traffic was flat or down in the U.S., Australia, Canada, Japan, the United Kingdom and Germany.
"The consumer is certainly being very discriminating in how they spend their dollar," McDonald’s President and CEO Chris Kempczinski said during a conference call on April 30 with investors. "It may be more pronounced with lower-income consumers, but it's important to recognize that all income cohorts are seeking value."
McDonald’s said its same-store sales – or sales at stores open at least a year -- rose 1.9% worldwide in the January-March period. That was below Wall Street’s forecast of a 2.1% increase, according to analysts polled by FactSet.
Kempczinski checked his McDonald’s app during the call and noted that there were multiple deals available in his area, including one Big Mac for 29 cents when you buy another. And Kempczinski said 90% of U.S. restaurants are offering meal bundles for $4 or less.
But Kempczinski said McDonald’s needs a nationwide value message and marketing to back it up. In some areas, it’s losing out to competitors on customers’ perception of value and affordability, he said – noting how Wendy’s is currently offering free fries with the purchase of a medium burger.
"There’s a lot of great value out there, but everyone else has a value message too," Kempczinski said.
This story was reported from Cincinnati. The Associated Press contributed.