Chicago: McDonald's has announced the extension of its 5 dollar value meal deal beyond the initial four-week period in most of its U.S. markets, as the promotion has been successful in driving customer traffic back to its restaurants.
According to a memo obtained by CNBC, 93 percent of McDonald's U.S. business units voted to prolong the offer, with most locations extending the deal through August or planning to vote on the extension soon.
The $5 value meal, which includes a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink, debuted on June 25 and was originally scheduled to last about a month. This combo meal offers significant savings compared to buying each item individually.
Myra Doria, National Field President, and Tariq Hassan, U.S. Chief Marketing and Customer Experience Officer, emphasized in the memo that the 5 dollar Meal Deal has successfully attracted customers away from competitors and has been effective in increasing restaurant visits.
McDonald's move comes as many restaurants are offering deals to combat declining traffic, with consumers, especially those with lower incomes, becoming more price-sensitive due to inflation. Competitors like Burger King, Wendy’s, Taco Bell, and even Starbucks have launched similar promotions priced between 3 dollars and 5 dollars to attract budget-conscious customers.
The memo highlighted the importance of increasing guest counts for sustained business growth. Coca-Cola contributed marketing funds to support the initial launch of the value meal, making it more attractive for franchisees. Franchisee advocates have suggested that ongoing contributions from Coca-Cola could help maintain the deal's viability for operators in the long term.
McDonald's is scheduled to report its earnings on July 29. The company declined to comment further on the promotion's extension.
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