McDonald's has a great news for $5 Meal deal lovers. The fast-food giant announced plans to keep the bargain combo on its menu for a while longer.
Sales of the combo have exceeded sale expectations, particularly among lower-income customers hit hardest by increased food prices. The combo includes a McDouble or McChicken sandwich, a four-piece order of Chicken McNuggets, small fries, and a small soft drink.
However, despite the success of the $5 Meal Deal, McDonald's reported a decline in sales for the first time in more than three years. The burger giant reported that the deal-conscious consumers contributed to a 1% decline in global sales after they avoided the food chain in the April-to-June 2024 period. It's the first decline in global sales for McDonald's since the fourth quarter of 2020.
Sales in the US fell 0.7% during the second quarter of 2024, while international sales dropped 1.1%. Overall, profit fell 12%.
Introduced in June, the special combo was a response to customer concerns about the rising cost of fast food, particularly after reports of one McDonald's location in Connecticut charging $18 for a Big Mac combo meal.
"Sentiment towards the brand around value and affordability" has improved, McDonald's USA President Joseph Erlinger said Monday during a call about the company's quarterly financial performance, according to a transcript from S&P Global Market Intelligence.
Currently, 93% of US McDonald's restaurants will keep the deal on the menu into August, with plans to extend it further, Erlinger said.
This value meal strategy is also being adopted by competitors such as Burger King, Taco Bell, and Wendy's.
McDonald's is also testing its biggest burger yet, the Big Arch. Already sold nationally in Portugal, the Big Arch will launch in Canada and Germany in August. The burger features two Quarter Pounder-sized beef patties, three slices of melted cheese, crispy onions, slivered onions, pickles, lettuce, and a new "tangy McDonald's sauce."
"Our team of chefs from around the world have created a more satiating burger to meet customer demand and to deliver on our ongoing commitment to menu innovation," McDonald's chairman and CEO Chris Kempczinski said Monday. The company plans to test the burger in a few markets this summer before potentially offering it in more locations.
McDonald's is also expanding the availability of its McCrispy chicken sandwich. Members of the MyMcDonald's Rewards loyalty program can enjoy additional perks like a free medium order of fries on Fridays with any purchase of $1 or more, a deal running through December 27.
"As consumers are more discriminating with their spending, we are focused on the outstanding execution of delivering reliable, everyday value and accelerating strategic growth drivers like chicken and loyalty," Kempczinski said.
