- McDonald’s strategy with its $ 5 meal offers has paid off.
- Chris Kempczinski, CEO of the company, said that the $ 5 agreement “stimulated other purchases”, increasing average expenses.
- The chain doubles its McValue meals to attract a consumer base concerned with costs.
The bet of McDonald’s on cheap meals is paying.
In a call for Monday results, McDonald CEO Chris Kempczinski said his $ 5 meal offers in the United States forced customers to spend more than $ 5.
“If you look at the $ 5 meal agreement, even if it is a convincing value, this leads to other purchases,” Kempczinski told investors in the call.
He added: “So the average check for the $ 5 meal agreement for us in the United States is north of $ 10. So it does what we hoped when we launched this.”
The $ 5 meal offer includes a McChicken or McDouble hamburger, four pieces of chicken chips, a small carbonated drink and a small portion of fries. The agreement should only last when it was introduced in June, but the chain announced in November that it would make the agreement a permanent element in its McValue menu.
Kempczinski said that other value -meal options, such as offers “Buy one, add one for $ 1”, which allow customers to buy a menu item at a high price and the next for $ 1, have also made “very online” with their expectations.
The chiefs said in the call that the chain also saw good results for its value meals for international markets.
Ian Borden, McDonald’s finance chief, spoke of the Canadian McValue menu on the call – an offer that includes a $ 5.79 meal package and a $ 1 coffee. He said that the coffee agreement “led coffee sharing gains during the quarter.”
In Germany, he introduced an extended MCSMART menu, which includes offers such as a double cheeseburger or a double chicken hamburger, a drink and medium fries for € 4.99, or $ 5.14.
Borden said that in Germany, the channel “continued to generate market share gains by developing the already successful MCSMART menu now offering a range of meal pits options introduced at the end of September.”
He also added that the chain also introduced a GBP5 meal agreement similar to the United Kingdom.
McDonald’s experienced a 0.4% increase in global sales of comparable stores in the last quarter, its sales at comparable stores in the United States decreasing by 1.4%. The company has registered global turnover in the fourth quarter of $ 6.39 billion.
The company’s share price increased by around 4.8% when the markets closed on Monday.
Food and drinking channels have bet value to attract an increasingly concerned consumer base from all over the world.
Pizza Hut in China saw the sales of its pizzas of less than $ 7, an increase of 50% in 2024. Starbucks now offers reloads of coffee and free brewed tea to customers in participating stores.
This occurs while the Americans have been pushed by the rise in fast food prices in recent years, some choosing to eat at home.
McDonald’s representatives did not respond to a comments to Business Insider sent outside regular work hours.
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