As fast food restaurant chain McDonald's looks to win back inflation-weary consumers, the company announced Thursday what will be in its new $5 value meals.
McDonald's said that starting Tuesday, customers can get the $5 meal deals that will include small fries, a four-piece chicken nugget, a small soft drink and the choice of a McDouble or McChicken sandwich.
McDonald's noted the $5 value meals will be available for a limited time.
“We heard our fans loud and clear — they’re looking for even more great value from us, and this summer that’s exactly what they’ll get,” said Joe Erlinger, president of McDonald’s USA, in a press release. “Value has always been part of our DNA. We’re focused on living up to that legacy and offering delicious, affordable options customers can enjoy any time they walk through our doors, go through our drive thru or place an order through our app.”
Additionally, McDonald's said it will offer deals through its app that are only available in certain regions. For instance, the company said that it would have a double cheeseburger and small fries pairing for $3.50 in Columbus, Ohio, or 25% off orders of over $10 at some restaurants in Savannah, Georgia.
In February, McDonald's CEO Chris Kempczinski said the company had seen a drop in low-income customers after it raised prices due to inflation. One of the goals the company said it had for 2024 was to make its products more affordable for consumers.
"Providing our customers with affordable options has always been core to our brand, and it's even more important as consumers feel pressure on their spending, particularly the lower-income consumer," Ian Borden, McDonald's chief financial officer, had said in an earnings call. "We continue to listen to our customers by evolving our value offerings, maintaining strong perceptions in value for money and affordability."
McDonald's competitors also enticing customers with value meals
McDonald's is far from the only company implementing value meals in response to softer consumer demand.
Wendy's recently announced a similar $5 Biggie Bag, that also includes a sandwich, small fries, four-piece chicken nuggets and a small drink. Wendy's sandwich options include a junior bacon cheeseburger, crispy chicken BLT, or a double stack.
Burger King's $5 You Way value meal also includes four-piece nuggets, value fries, and value soft drink with the choice of a Whopper Jr., Chicken Jr., or back cheeseburger.
Fast food prices surging faster than inflation rate
Prices at fast food restaurants increased at a rate that far exceeds inflation over the last decade, according to an analysis from FinanceBuzz.
According to the data, leading fast food restaurants increased prices by about 60% between 2014 and 2024. That is nearly double the rate of inflation. According to the consumer price index, the general cost of goods and services has gone up 31% in the past decade.
Of the leading fast food chains, McDonald's had the highest rate of price increases, with consumers paying double what they did in 2014.
Wendy's and Burger King customers are paying 55% more than they did in 2014. In other words, a $10 order at McDonald's in 2014 would now cost $20, while that same order in 2014 at Wendy's or Burger King would now cost about $15.55.
Related stories:
A new survey shows Americans say fast food is now a luxury
McDonald's stops testing AI ordering as tech expands at other restaurants
