McDonald's franchisees voted on Monday to extend the company's $5 value meals as the limited-time offer was set to expire in the coming days. Bloomberg was first to report the extension of the deal.
The extension was also confirmed by the popular X account McFranchisee, which often posts insider perspectives as a McDonald's restaurant owner. Bloomberg reported that 93% of franchises voted in favor of extending the $5 value meals into August.
The McFranchisee account noted that the $5 value meals are a "tough promo to swallow" for high-cost markets such as New York and San Diego. However, the promotion has also led to greater foot traffic, as data indicated that fewer customers were visiting McDonald's after a period of high inflation, which forced many locations to raise their prices significantly.
McDonald's saw a massive boost in foot traffic in the first week following the June 25 launch of its $5 meal deal, according to data from Placer.ai. June 25 marked the busiest Tuesday of the year for McDonald's, Placer.ai reported. Placer.ai said foot traffic increased between 5.4% and 7.9% year over year for the four days following the launch of the value meal.
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The $5 meal deal includes small fries, a four-piece Chicken McNuggets, a small soft drink, and the choice of a McDouble or McChicken sandwich. Top rivals Burger King and Wendy's have also offered similar promotions.
“We heard our fans loud and clear — they’re looking for even more great value from us, and this summer that’s exactly what they’ll get,” said Joe Erlinger, president of McDonald’s USA, in a press release. “Value has always been part of our DNA. We’re focused on living up to that legacy and offering delicious, affordable options customers can enjoy any time they walk through our doors, go through our drive thru or place an order through our app.”
McDonald's is among the restaurants that have said price hikes may have priced out some consumers during a period of high inflation.
According to the consumer price index, between January 2021 and June 2024, prices for food away from home increased by 22.7%. Food at home increased by 20.9% during the same time period. With rising labor costs, restaurants said they had to raise prices.
But with food costs leveling off, restaurants are rethinking their pricing strategies.
