A customer walks past a sign in an aerial view as he leaves a McDonald’s restaurant on April 3, 2023 in San Pablo, California.
Justin Sullivan | Getty Images
McDonald’s The fast-food giant is extending the validity of its $5 Value Meals beyond its initial four weeks in most of its U.S. markets as it says the offer is driving traffic back to restaurants.
In a memo to the US system obtained by CNBC on Monday, executives wrote that nearly all business units, including 93% of restaurants, voted to extend the promotion beyond its original end date at the end of this month. Most locations will extend that through August or plan to vote on whether to do so, the memo said.
$5 value meals launched at Menu board starting June 25th It was initially expected to last about a month. The meal includes a McChicken or McDonald’s Double, four chicken nuggets, fries and a drink. combination cost Much less than buying these items individually.
“Our message resonates with millions of customers,” national field president Myra Doria and U.S. chief marketing and customer experience officer Tariq Hassan wrote in the memo. “Our customers are not competing when they order the $5 meal deal, and early performance shows the offer is achieving its goal of attracting guests back to our restaurants.”
Bloomberg earlier reported the decision to extend the transaction.
The move comes as restaurants roll out deals to boost sluggish traffic as consumers – especially low-income diners – balk at higher prices after years of inflation-driven price hikes . The meals face competition from other chains like Burger King, Wendy’s, Taco Bell and even Starbucks, which are offering $3 to $5 deals as companies look to attract value-conscious consumers in a competitive environment.
The memo continued: “We must remember that increasing guest numbers ultimately drives our business and is key to continued growth.”
Coca-Cola invested marketing dollars to make the initial value more attractive to franchisees, CNBC reported in May. Some franchisee advocates urge companies to make future contributions to offer discounts In the long run, it is sustainable for operators.
The company is scheduled to report earnings on July 29.
McDonald’s declined to comment.
