McDonald's Corp. (NYSE:MCD) reportedly plans to extend its $5 meal deal across most U.S. locations to attract cost-conscious diners.
Launched on June 25, this initiative aims to entice customers who have cut back on fast food due to inflation.
Approximately 93% of McDonald's restaurants have committed to offering the bundle beyond the initial four-week window, with some locations planning to continue through August, reported Bloomberg.
Early results show the meal deal is successfully drawing customers back to the restaurants, per the report.
McDonald's Chief Marketing Officer Tariq Hassan and National Field President Myra Doria noted in a memo that increasing guest counts is crucial for sustained growth.
The company is also considering extending the meal deal further and extending hours of operation to meet demand during off-peak times.
The company aims to enhance its affordability strategies for the rest of the year, addressing consumer spending limitations due to shrinking disposable incomes.
Also Read: McDonald's Customers Prefer Chicken Over Plant-Based Options: Report
The company's $5 meal deal includes a McDouble cheeseburger, small fries, four-piece chicken nuggets, and a small soft drink. The fast-food chain's menu has seen historic price hikes of more than 200% in some cases in the past decade.
McDonald's is set to announce its second-quarter earnings on July 29. The extended meal deal and other affordability measures are part of the company's efforts to maintain customer traffic amid economic pressures.
In April, the company reported first-quarter FY24 sales growth of 4.6% year-on-year to $6.17 billion and an adjusted EPS of $2.70.
McDonald's stock has lost more than 12% in the last 12 months. Investors can gain exposure to the stock via Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) and Vanguard Consumer Discretionary ETF (NYSE:VCR).
Price Action: MCD shares are trading higher by 0.33% at $258.13 at last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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