McDonald’s has decided to continue its popular $5 value meal until December at most locations in the U.S. This decision is likely to inspire similar moves from their competitors.
The fast-food chain first launched this deal in June after experiencing a challenging first quarter, marked by a decline in customer visits and lower spending per order. This trend was especially noticeable among customers making less than $45,000 annually. The $5 Meal Deal offers customers a choice of a McDouble burger or a McChicken sandwich, along with small fries, four-piece Chicken McNuggets, and a small drink.
“We are dedicated to keeping our prices as affordable as possible, along with our franchisees,” stated Joe Erlinger, the U.S. President of McDonald’s, during a meeting on Thursday.
With grocery prices experiencing a slowdown in inflation, more individuals are opting to dine at home. According to the U.S. Census Bureau, restaurant sales showed a slight increase in July, but this was mainly due to rising menu prices. When adjusted for inflation, restaurant sales actually fell by 0.7% compared to July 2023, as reported by the National Restaurant Association.
Competitors like Burger King quickly responded to McDonald’s offer by introducing their own $5 meal deals, with Burger King recently extending its promotion through October.
Wendy’s has also been part of this competition. After initially offering a $5 meal deal, they began including a free Frosty in June and now have a special $5 meal deal designed for college football fans, which features no delivery fees every Saturday this fall.
These promotions are effectively increasing customer traffic. Analysis from Placer.ai, which uses cellphone data to track retail visits, shows that U.S. visits to McDonald’s increased by 2.4% in June, following the launch of the $5 meal deal, and this trend has continued since then.
Additionally, Placer.ai reported that Taco Bell recorded a 12.3% rise in visits during the week of July 29 after offering free drinks to celebrate the 20th anniversary of its Baja Blast beverage.
It’s not just fast-food chains that are rolling out deals; Olive Garden has also introduced its Never-Ending Pasta Bowl special. This includes soup or salad, breadsticks, and pasta for $13.99, available through November 17.
Furthermore, McDonald’s plans to unveil additional promotions this fall, such as free medium fries with a $1 minimum purchase every Friday and offering 10-piece Chicken McNuggets for just $1 between November 4 and December 2.
