Monday, May 27, 2024

McDonald’s Responds to High Prices With Value Meal: Report

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After pushback from customers over sky-high fast food prices, McDonald’s has been teasing new initiatives to win back its loyal fans, including testing bigger burgers and new recipes.

Now, the burger chain is also reportedly trying out new menu combinations to make eating at McDonald’s easier on consumers’ wallets.

Citing people familiar with the matter, CNBC reported on Friday that McDonald’s is set to introduce a $5 value meal, where customers can choose either a McChicken or a McDouble, McNuggets, fries, and a drink.

The average cost for a single McDouble as of press time is around $3.65.

Related: McDonald’s in Connecticut Goes Viral For Astronomical Prices

On April 30, after McDonald’s reported its Q1 2024 earnings and a 2% quarterly jump in global comparable sales growth (the chain’s 13th consecutive quarter of comparable sales growth), CEO Chris Kempczinski pledged to offer more value to consumers.

McDonald’s CEO Chris Kempczinski (Nuccio DiNuzzo/Chicago Tribune/Tribune News Service via Getty Images)

“McDonald’s has a long history of being the go-to destination for value and it’s imperative that we continue to keep affordability at the forefront for our customers,” Kempczinski said on a call with investors. “We literally wrote the playbook on value, and we are committed to upholding our leadership within the industry.”

Related: McDonald’s CEO Says That ‘Affordability’ Is On the Way as Company Struggles Through Sales Slump

“Eating at home has become more affordable,” Kempczinski said during the call. “The battleground is certainly with that low-income consumer.”

A recent study by FinanceBuzz found that McDonald’s prices have almost doubled (increased by about 100%) from 2014 to 2024 across all popular items, making it the chain with the highest price increase amongst its rivals.

In February, during a Q4 2023 earnings call, Kempczinski hinted that the company would be paying “probably more attention” to “affordability” following a hit in global sales during the quarter due to higher menu prices.

McDonald’s was down just over 6.7% as of Friday afternoon.

Related: McDonald’s CFO Says ‘Everybody’s Fighting for Fewer Consumers’ as Earnings Reports Show People Are Spending Less on Fast Food



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