McDonald’s is contemplating the addition of a $5 meal deal to its menu nationwide in the U.S. This move aims to entice customers back into its restaurants, according to a reliable source familiar with the company’s plans.
The proposed meal would offer a selection of either a McChicken, a McDouble, or a four-piece chicken nuggets, accompanied by fries and a drink, as disclosed to CBS MoneyWatch by the insider. Discussions between McDonald’s corporate leadership and franchise owners are ongoing regarding the introduction of this $5 meal.
These discussions follow reports from McDonald’s executives regarding a slowdown in foot traffic at their restaurants. Some customers, feeling the pinch of inflation, are scaling back on fast-food dining as various chains, including McDonald’s and Subway, have raised prices over the years to offset increased labor and ingredient expenses.
McDonald’s CEO Chris Kempczinski emphasized the importance of maintaining affordability during an earnings call on April 30, stating that the company must stay focused on keeping prices reasonable to encourage customers to return.
According to personal finance website FinanceBuzz, McDonald’s recorded the highest increase in menu prices among all U.S. fast-food chains from 2014 to 2024. A January poll by consulting firm Revenue Management Solutions revealed that about 25% of individuals earning less than $50,000 annually are reducing their fast-food consumption due to cost concerns.
Rising labor costs are cited by restaurant chains as a significant driver behind price hikes. Nonetheless, industry analysts assert that fast-food chains must cater to low-income customers to meet revenue and earnings targets.
Analyst Mark Kalinowski, president of Kalinowski Equity Research, emphasized the importance of McDonald’s appealing to its primarily middle- and lower-income customer base, urging caution in expenditure amidst current market conditions.
However, introducing a $5 meal wouldn’t necessarily position McDonald’s as an industry trailblazer. Wendy’s introduced the 4 for $4 meal in 2015, comprising a small hamburger, four-piece chicken nuggets, small fries, and a small drink. Subsequently, in 2019, Wendy’s added its $5 Biggie Bag, offering a choice of sandwich, four chicken nuggets, a small order of fries, and a small drink.
McDonald’s, the largest fast-food chain in the nation, employs over 2 million people across its 14,300 restaurants and an additional 150,000 individuals at its corporate offices.
