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McDonald’s plans US$5 meal deal next month to counter customer frustration over high prices

McDonald’s plans to introduce a $5 meal deal in the United States next month to counter slowing sales and customer frustration over high prices.

The deal would let customers get a four-piece McNugget, small fries, a small drink and a McDouble hamburger or McChicken sandwich for $5 in most areas, according to a person familiar with the deal who did not was not authorized to discuss its details. .

The one-month deal is expected to begin June 25 and will be announced nationally. Some stores with higher prices, such as those in California or Hawaii, may charge more, the person said.

McDonald’s did not confirm the upcoming deal when asked about it by The Associated Press on Thursday. But the Chicago-based burger giant said last month it plans to step up its deals to combat slowing customer traffic in some markets.

“We know how much it means to our customers when McDonald’s delivers meaningful value and communicates it through national advertising,” McDonald’s said in a statement Wednesday.

The meal deal would represent a substantial discount off list prices for items that will be included in the limited-time offer. A McDonald’s restaurant in Michigan charged $9.66 for the four items sold individually on Thursday.

Fast food prices have increased dramatically in recent years due to a variety of factors, including high costs of labor, food and paper products. Between the first quarter of 2022 and the first quarter of 2024, the amount spent per person per visit at a U.S. fast food restaurant increased 25%, from $12 to $15, according to Technomic, a restaurant data company.

McDonald’s said earlier this year that it was seeing fewer U.S. visits and lower spending from customers earning less than $45,000 a year.

As food inflation slows, more people are choosing to eat at home, said Chris Kempczinski, president and CEO of McDonald’s. In the first quarter, the company said fast-food traffic was flat or down in many key markets, including the United States, Canada and the United Kingdom.

“The consumer is certainly very discriminating in how they spend their money,” Kempczinski said during a conference call with investors. “This may be more pronounced among lower-income consumers, but it is important to recognize that all income cohorts are looking for value.”

During the same call, Kempczinski said McDonald’s needs a national agreement emphasizing its value if it wants to keep up with its competitors.

Other chains also reported slowing sales. Starbucks said last month that it was seeing a sharper and faster decline in U.S. consumer confidence than it had expected for the January-March period. Starbucks has announced plans to open its Rewards app to non-members in July so they can take advantage of the deals on offer.

News Source : finance.yahoo.com
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