McDonald’s introduces ‘$5 menu deal’ as price war intensifies in fast-food sector

McDonald’s (MCD) has officially launched its latest attempt to win back price-conscious customers with its “$5 Meal Deal” and a series of other promotions set to run through the summer or the rest of 2024.

The chain’s plans to introduce the low-cost offering were reported last month after fast-food giants such as Restaurant Brands International’s (QSR) Wendy’s (WEN) and Burger King joined McDonald’s in offering cheaper alternatives after admitting that inflation was hurting sales as consumers held back on spending on non-essentials and focused on essentials.

What McDonald’s is offering this summer and why

Starting Tuesday, McDonald’s is offering a number of new deals for a limited time, most notably the “$5 Meal Deal,” a combination of a McDouble or McChicken sandwich, four Chicken McNuggets, small fries and a small soft drink.

The fast-food giant is also introducing a series of region-specific offers as well as a “Free Fries Friday,” which offers a free medium portion of fries with every purchase of at least $1 in the McDonald’s app every Friday through the end of 2024.

McDonald’s is one of several companies – particularly in the fast-food sector – that point out that inflation has hurt their sales in recent quarters as consumers become increasingly price and value conscious and spend less on smaller, non-essential purchases such as fast food.

The price-cutting trend is also affecting other sectors of the economy, such as retail. Target (TGT) and Walmart (WMT) recently announced plans to cut prices on thousands of items as management realized that stores are feeling the pinch from a decline in consumer spending.

McDonald’s shares are trading 1.5 percent lower at $256.43 as of 12:30 p.m. ET Tuesday and have lost more than 13 percent so far this year.