McDonald’s has confirmed it will offer a limited $5 combo meal this summer in hopes of attracting inflation-hit customers who stayed away after the fast food chain’s price hikes.
The Chicago-based company announced it will launch a month-long promotion starting June 25 during which diners can choose from four items – a McDouble or McChicken sandwich, accompanied by small fries, a small drink carbonated and a four piece. Chicken McNuggets – for just $5.
McDonald’s had come under fire after some locations were charging up to $18 for a Big Mac meal and $7.29 for an Egg McMuffin.
McDonald’s, like its peers, has raised prices by several single-digit percentages over the past year in response to rising costs of eggs and other raw materials. It also raised prices in California, where the state imposed a $20-an-hour minimum wage on fast-food workers.
A McDonald’s spokesperson told the Wall Street Journal that the $5 meals were part of a strategy to offer nationally advertised value deals.
“This has been true since our beginnings and has never been more important than today,” the company said.
The Post has requested comment from McDonald’s.
Last week, Bloomberg News reported that McDonald’s was considering a $5 meal.
Global restaurant chains such as McDonald’s and Starbucks have seen low-income customers opting to eat more meals at home amid a cost-of-living crisis, forcing companies to offer bigger promotions to lure them into their points of sale.
Some McDonald’s customers have reported that some locations are no longer offering free refills.
McDonald’s, which is more exposed to lower-income customers, announced last month that its global sales growth had slowed for the fourth consecutive quarter.
“I think it’s important to recognize that all income groups are looking for value,” CEO Chris Kempczinski said on a post-earnings call.
McDonald’s shares were up 0.8% midday Wednesday.
McDonald’s missed its quarterly profit estimates for the first time in two years as budget-conscious consumers overlooked its offerings and the Middle East conflict weighed on the burger chain’s international sales.
Global comparable sales growth fell for the fourth consecutive quarter to 1.9%, with the company saying consumers have become “more discriminating with every dollar spent.”
Analysts were expecting an increase of 2.35%, according to LSEG data.
“Consumers are certainly very discriminating in how they spend their money…I think it’s important to recognize that all income groups are looking for value,” said Chris Kempczinski, CEO of McDonald’s, during ‘a post-earnings call.
McDonald’s results contrast with those of other fast-food chains that have also relied on quality menu items to attract customers who are dining out less.
“We have seen that our relative affordability superiority has diminished in some markets,” Kempczinski added.
Restaurant Brands International, owner of Burger King, beat expectations for quarterly results, while Domino’s Pizza benefited from deals on pizza.
Comparable sales of the company’s international licensees, which accounted for 10% of its overall revenue in 2023, decreased by 0.2%, offsetting positive trends in Japan, Latin America and Europe.
Analysts had expected a 0.98% rise for the unit.
With post wires
News Source : nypost.com
Gn bussni
