McDonald’s is focused on affordability. What we know after reports of $5 meal deals.
McDonald's is seemingly fighting to attract customers one deal at a time.
McDonald's has faced criticism as prices soared in recent years, resulting in less revenue from lower-income consumers and reduced foot traffic in stores. As a result, Chief Executive Officer Chris Kempczinski said in a late April first-quarter earnings call that McDonald's has to be “laser-focused on affordability."
McDonald's has since promised a reduction in prices and expressed interest in exploring more avenues to win customers back, which could include $5 meal deals, according to reports.
A prior bid to introduce a $5 meal deal specifically was rejected by franchise operators, reported Bloomberg and CBS, but is now being re-proposed with some new terms.
Here's what we know about McDonald's plans to become more affordable, what's next for the fast-food chain.
McDonald's focuses on cost:Amid backlash over $18 Big Mac meals, McDonald's will focus on affordability in 2024, CEO says
McDonald's $5 meal deals are coming, reports say
The $5 meal deal will reportedly offer a choice of a McChicken, McDouble or four-piece chicken McNuggets with fries and a drink.
Bloomberg reported that McDonald's corporate is still working with franchise owners on plans to roll out the deals. As McDonald's deals can be regional, it is not yet known where or when the meal will be introduced.
McDonald's did not immediately respond to USA TODAY's request for comment.
McDonald's CEO on affordability
McDonald's CEO Kempczinski has emphasized affordable pricing in recent earnings calls.
"I think what you're going to see as you head into 2024 is probably more attention to what I would describe as affordability," he said in February. He noted that eating at home has become more affordable and said "the battleground is certainly with that low-income consumer."
He continued to push affordability in an April earnings meeting. "Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry," Kempczinski said. "It's imperative that we continue to keep affordability at the forefront for our customers."
McDonald's meal boxes, local deals
One of McDonald's location-based deals went viral in March as one Texas mom shared a $12 meal box she got from the chain that she said fed her family of five.
"There's two cheeseburgers in here, but there are four small fries, ten-piece chicken nuggets and there's two Big Macs. $12 y’all," she said in the video. In another clip, she showed her receipt, which read "MickeyD's Dinner Box" at the price of $12.19. After tax, the total came to $13.20, though commenters from across the U.S. chimed in to say that the price was regional.
Some reported similar meal box deals selling for $18.99 to $35.99 in their states. McDonald's told USA TODAY that franchisee store owners set their own prices and have the flexibility to create promotions that will drive demand in their restaurants. These promotions may vary by restaurant. Generally, shareable, bundled deals vary by location and fans can access them through the app.
McDonald's expands with new restaurants, CosMc's spinoff
In December, McDonald's announced plans to open an additional 10,000 restaurants around the world by 2027, with 900 of those slated for the U.S.
The company also announced an ambitious goal for MyMcDonald's Rewards, saying it hopes to expand its membership from 150 million to 250 million 90-day active users by 2027.
Besides this expansion, McDonald's has also invested in a new spin-off venture called CosMc's, which has thus far proven successful for the chain.
The retro small-format restaurant is McDonald's first foray into the beverage-led market, serving funky customizable drinks and some small bites. The first location in Illinois saw lines hours long on its first day and traffic surpassing that of an average McDonald's in its first month. A second store opened in Dallas earlier this year.
The fast-food giant promised 10 more locations opening in 2024, though it did not initially specify exactly where beyond the "Dallas and San Antonio metro areas."
Contributing: Gabe Hauari