William Simpson
McDonald’s is considering adding a $5 meal to its U.S. menu as a way to entice customers to return to its restaurants, according to a source familiar with the plans.
The meal may include your choice of McChicken, McDouble or four-piece chicken nuggets, as well as fries and a drink, the person told CBS MoneyWatch. Leaders at McDonald’s corporate offices are still in talks with franchise owners about introducing the $5 meal, the source said.
Discussions about launching a new value-for-money meal come just weeks after McDonald’s executives reported slower growth in foot traffic at its restaurants. Some customers tired of inflation are reducing their consumption of fast food after many chains, from McDonald’s to Subway, raised prices in recent years to offset higher labor and ingredient costs.
The company needs to be “laser-focused” on keeping prices affordable to convince customers to return, McDonald’s CEO Chris Kempczinski said during an April 30 earnings call with analysts and investors.
“Consumers continue to be even more demanding with every dollar they spend as they face high prices on their daily expenses, which is putting pressure on the industry,” added Kempczinski. “[I]It is imperative that we continue to keep accessibility at the forefront for our customers.”
McDonald’s Prices
Among all US fast food chains, McDonald’s increased menu prices the most between 2014 and 2024, according to for personal finance website FinanceBuzz. About 25% of people earning less than US$50,000 are reducing their consumption of fast food, pointing to costs as a concern, according to a January study. survey by consulting firm Revenue Management Solutions found.
Restaurant chains point to rising labor costs as a key factor driving prices. Still, industry analysts say fast food chains need to court low-income customers if they want to continue meeting revenue and profit projections.
“When you look at McDonald’s, they’re not getting a majority of high-income customers — the middle- and lower-income classes are the majority of their business,” analyst Mark Kalinowski, president of Kalinowski Equity Research, told CBS MoneyWatch this. month. “They need to be cautious with their spending, and that’s what we’re seeing now.”
In fact, a $5 meal wouldn’t necessarily make McDonald’s a pioneer in the fast food industry. In 2015, Wendy’s introduced the 4 for $4 meal that includes a small burger, four-piece chicken nuggets, fries and a small drink, and in 2019, the restaurant added its $5 Biggie Bag. The latest offering includes a sandwich option , four chicken nuggets, a small order of fries and a small drink.
McDonald’s, the country’s largest fast food chain, employs more than 2 million people at its 14,300 restaurants and another 150,000 employees at its corporate offices.
