McDonald’s rolls out its new value offering today, aiming to lure back cost-conscious customers who turned away from the chain amid increasing prices.
The $5 deal includes four items – a McChicken sandwich or McDouble cheeseburger, four-piece nuggets, small fries, and a small soft drink. The caveat: It’s only available for a month.
The new item has been brought to the largest fast-food chain’s menu amid a tough time for the company. McDonald’s missed sales expectations in Q1, and it’s battling a perception that the once-reliably affordable chain has gotten too expensive.
Joe Erlinger, president of McDonald’s USA, put out a rare open letter denouncing “viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates.”
“The average price of a Big Mac in the US was $4.39 in 2019,” he wrote. “Despite a global pandemic and historic rises in supply chain costs, wages and other inflationary pressures in the years that followed, the average cost is now $5.29. That’s an increase of 21% (not 100%).”
McDonald’s is hoping that the new value meal will bring back customers. Coca-Cola contributed $4.6 million to subsidize the promotion after some franchises said it would eat into their profits.
While McDonald’s is the largest fast-food chain by sales volume, competition has been tough. Last month, shortly after the Wall Street Journal reported the chain’s intentions to bring out this deal, Wendy’s dropped a $3 meal deal, and Starbucks jumped in with a $5 coffee and pastry combo.
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