McDonald’s Corp announced in a recent report that it would be rolling out $5 meal for budgeting US customers for the month of June. This comes after months of coverage of many McDonald’s locations raising prices dramatically, leading to reputational damage for a brand once known for its affordable food.
The $5 meal combo is set to include the option for a McDouble or a McChicken, with four chicken nuggets, fries, and a drink, according to CNBC which spoke to a source with knowledge of the situation.
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Last week, Bloomberg had reported that McDonald’s was in communication with its franchisees . McDonald’s must be “laser-focused on affordability” due to the departure of frugal customers, said CEO Chris Kempczinski. John Palmaccio, chairman of the franchisees’ advertising fund (which allows regional owners to have a say on promotional items like the Grimace Shake), said franchisees and suppliers are cooperating to ensure “great value and affordability” now that “our customers really need it.”
In Q3 2023, McDonald’s brought in a total of $6.69 billion, surpassing the expectation of $6.58 billion, according to Refinitiv data firm. This was in part due to price hikes across its franchisees, including the infamous $18 Big Mac.
Related: McDonald’s CEO Pledges to Ditch $18 Big Macs, Return to “Affordability” After Quarterly Shortfall
In the first quarter of FY2024, McDonald’s has suffered from slow growth in US sales as well as fallout from war in the Middle East. Growth in the US slowed by 1.9 percent, short of analysts expectations. As Valuetainment previously reported, battles erupted when an Israeli McDonald’s franchisees decided to donate food to the Israel Defense Forces (IDF), leading many to boycott the restaurant at large. To avoid losing customers, franchisees in Muslim nations began denouncing the Israeli McDonald’s and make it clear they did not support Israel.
Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.
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