McDonald’s officially adds a $5 meal to its menu

McDonald’s (MCD) is joining the ranks of fast-food chains adapting to economic pressures by offering a new value meal option. Starting June 25, the global fast-food giant will add a $5 meal option to its menu to reflect growing consumer cost consciousness.

This strategic decision comes as part of a broader trend in the fast-food industry, with numerous chains launching similar, low-priced offerings.

Brooke DiPalma of Yahoo Finance explains the details.

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This article was written by Angel Smith

Video transcript

We are looking for an offer for your dinner.

Maybe McDonald’s is right for you?

There is a new value menu at Golden Arches, available from today.

McDonald’s is one of the latest fast food chains to expand its menu with cheaper dishes in an effort to lure customers back to its restaurants.

Let’s bring in our own Brooke Dipalma.

I mean, Brooke, I remember the only lure I needed back then as a kid was just the happy place.

The playpen, the Happy Meal toy.

Yes, let’s leave that aside.

McDonald’s is now taking it very seriously to attract customers back to its stores, especially after its latest quarterly report.

This $5 meal deal includes an MC Double or McChicken, four chicken nuggets, a small order of French fries, and a small drink.

This comes after McDonald’s had a difficult first quarter. We saw a slight increase in existing store sales of 2.5%, but this was less than Wall Street expected.

And now the company is hoping to win back customers with this $5 menu offer. And it’s not the only company doing this, as you said. There are others doing this too.

We heard from KFC in April that they introduced a $499 meal plan, and Burger King also introduced a $5 meal plan to go.

And now McDonald’s is the latest, we also had the US President of Subway last week with these $3 Dippers.

But that’s how it has to work, Brad.

For this to really pay off for franchisees, we need to see an increase in guest numbers and bring more customers into the restaurant, because inexpensive menus do not necessarily become more expensive.

Mar’s investors also hope that this will not only increase the number of guests, but that when customers come into the restaurant they will actually say: “Hey, either I’m going to upgrade or I’m going to have a Two McChicken or two MDOs.”

I will add more to my articles or my ticket.

Okay, so I guess of the people out there who are bulking up and choosing the cheap menu items, that applies to two of them.

Well, let’s focus on California here too: A McDonald’s franchisee has decided to close a branch here.

The story goes on

That was interesting.

So what did you say was behind this step?

Yes, this is Scott Roderick.

He said this was inevitably a response to California’s legislation and also to landlords demanding high rents per square foot and high property taxes and mall fees.

He said the minimum wage was increased from $16 to $20 under the California Fast Act, which took effect on April 1.

He said that this, along with the other factors I mentioned, was one of the reasons that led him to the difficult decision to close his San Francisco location.

A franchise expert I spoke to said this won’t necessarily impact McDonald’s overall since it’s just one location.

Of course, if there are several hundred, then McDonald’s will definitely be affected.

However, this has an impact on consumers’ attitudes towards the health compatibility of the brand.

When you see the clothing at your local McDonald’s, think about how McDonald’s is doing overall.

Okay, Brooke Dipalma is analyzing and following everything, the Arcos Dorados, the Golden Arches, so to speak, are all there.

This is the translation.

Thank you.

Am grateful.