McDonald’s Corp. (MCD) shares rose on Friday following reports that the fast-food giant is trying to lure customers back by offering a low-cost meal deal in the US.
McDonald’s Share Price Climbs on Hopes of Low-Cost Meal Deal
Early speculation points to a $5 meal deal designed to fight back after the chain saw its sales fall due to the current challenging economic conditions for many American families. The promotion could offer fries and a drink with a McDouble or a McChicken, although this hasn’t yet been confirmed.
This move comes following disappointing US sales figures in the Q1 earning reports that led CEO Chris Kempczinski to point out that MCD needs to adopt a laser focus on affordability to appeal to increasingly cost-aware consumers. He said:
What we don’t have in the US right now is a national value platform.
He also stated that the company has been offering local promotions rather than national deals like those provided by their main rivals.
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The fast-food company’s share price rose as much as 2.7% as the market reacted to the news of this new deal, the biggest rise since the start of 2023. However, rival chains like Burger King (BKC) and Wendy’s Co (WEN) also suffered falling prices.
Any potential low-cost meal deal still has to be approved by the franchise operators who run the vast majority of American McDonald’s restaurants. The franchisees blocked a previous attempt to launch a similar deal earlier this year amid concerns that they could lose money in states like California, where high minimum wages are paid.
