McDonald’s will extend its $5 value meal beyond its initial four-week window in most of its U.S. markets as the fast-food giant says the offer is driving traffic back to restaurants. In a memo submitted to the U.S. system which was obtained by CNBC on Monday, executives wrote that nearly every business unit, encompassing 93% of its restaurants, voted to extend the promotion past its original end date late this month.
The memo said the majority of locations will extend through August, or plan to vote on whether to do so. The $5 value meal was rolled out on menu boards and was initially set to last roughly a month. It includes a McChicken or McDouble, four-piece chicken nuggets, fries and a drink. The combo costs substantially less than purchasing those items individually.
Myra Doria, national field president, and Tariq Hassan, U.S. chief marketing and customer experience officer, quoted in the memo “Our message is resonating with our millions of customers.” “When our customers are ordering the $5 Meal Deal, they aren’t visiting the competition, and early performance shows this deal is meeting the objective of driving guests back to our restaurants.”
The move comes as restaurants offer deals to boost sagging traffic, as consumers particularly lower-income diners balk at higher prices after years of inflation-fueled hikes. As companies look to bring in value-conscious consumers in a highly competitive environment, the meal has faced competition from other chains including Burger King, Wendy’s, Taco Bell and even Starbucks, which have offered deals ranging between $3 and $5.
The memo added “We must remember that driving guest counts ultimately propels our business and is the key to sustained growth.” The marketing funds were increased substantially by Coca-Cola to make the initial value offer more appealing for franchisees, CNBC reported in May. Some franchisee advocates had pushed for future contributions from the company to make the discounted offering sustainable for operators in the long run. The company is set to report its profits on July 29.
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