McDonald’s is reportedly considering introducing a new $5 value meal in the United States to attract customers who are increasingly dissatisfied with higher prices.
While McDonald’s did enjoy better-than-expected sales in 2023, the company said higher prices have deterred some segments of the market. The restaurant chain noted a drop in traffic from customers earning $45,000 or less. In response, it appears the fast food giant is trying to recapture some of the lost market share by offering lower-priced options.
The $5 meal will reportedly include a choice of a McChicken, a McDouble, or four-piece nuggets, along with fries and a drink. Rumors of its potential launch come in the wake of revelations from McDonald’s executives that its locations have been experiencing a dip in foot traffic.
“It is clear that broad-based consumer pressures persist around the world,” CEO Chris Kempczinski said during a McDonald’s earnings call last month, per Fox 4 KDFW.
Still, it is not just the Golden Arches seeing troubling activity in the fast food sector.
During the first quarter of the year, Yum Brands, owner of KFC, Taco Bell, and Pizza Hut, announced earnings that fell short of Wall Street estimates. Repelled by rising prices, consumers have changed their spending habits to avoid increasingly costly drive-thru fare.
The consumer price index rose 19% between 2019 and 2023. During that same period, the full-service meals and snacks category jumped 24%, while the limited-service meals and snacks category, which includes names like Taco Bell, surged 28%.
As of February 2023, Dallas had 56 McDonald’s locations, one of the highest in the United States. This figure does not include the growing number of CosMc’s on the horizon, the fast food chain’s new beverage-focused spinoff. While 56 may seem like a lot, it pales in comparison to the number one spot held by Houston, which has 126 McDonald’s.