McDonald’s considering $5 meal deal launch to draw diners, source says
1:57 pm Friday, May 10th, 2024
(Reuters) -McDonald’s U.S. franchises are considering launching a $5 meal deal, a source familiar with the matter said on Friday, as the fast-food chain looks to draw more inflation-hit customers to its restaurants.
Global restaurant chains such as McDonald’s and Starbucks have seen lower-income customers opting to eat more meals at home amid a cost-of-living crisis, forcing the companies to offer steeper promotions to attract them to their outlets.
McDonald’s, which has a higher exposure to the lower-income cohort, saw its global sales growth slowing for the fourth straight quarter.
“I think it’s important to recognize that all income cohorts are seeking value,” CEO Chris Kempczinski said on a post-earnings call last month.
Bloomberg News first reported about McDonald’s plans.
McDonald’s shares were up about 2% at $272.80 following the news.
(Reporting by Granth Vanaik in Bengaluru; Editing by Anil D’Silva, Pooja Desai and Shounak Dasgupta)
