McDonald’s new $5 Meal Deal isn’t going as planned (so far …)

In recent news, McDonald’s has been facing a tough crowd. With inflation squeezing wallets, the fast-food giant tried to attract cost-conscious customers by launching a new $5 meal deal on June 25. The offer includes a McChicken or McDouble, a four-piece chicken nugget, fries, and a drink, all for just five bucks. Sounds like a deal, right? However, after more than a month, this strategy isn’t quite hitting the mark. Despite the promotion, McDonald’s isn’t seeing a significant boost in foot traffic at its restaurants.

Analyst Peter Saleh has pointed out that the timing of the July 4th holiday and Hurricane Beryl in Texas might have skewed results. So, it’s too early to judge whether the $5 menu will indeed drive more customers through the doors. McDonald’s CEO Chris Kempczinski also mentioned in a recent earnings call that consumers are being more cautious with their spending due to rising prices, impacting the entire quick-service restaurant (QSR) sector.

To add to the mix, McDonald’s has been under fire for its price hikes. Since 2014, the fast-food chain has increased its menu prices by 100%, which is a whopping three times the national inflation rate. This has led many Americans to rethink their fast-food habits. A recent survey revealed that 62% of Americans are eating less fast food due to high prices, and 78% now see it as a luxury. The rising costs have many opting to cook at home instead of splurging on fast food.

As McDonald’s navigates these economic pressures and shifting consumer behaviors, it’s clear that the fast-food industry is grappling with significant challenges. Whether this new menu deal will ultimately help McDonald’s reclaim its customer base or if the company will need to pivot its strategy remains to be seen………[read more]