McDonald's on Thursday revealed what will be included in its $5 value meal when the fast-food giant launches the limited-time promotion next week. McDonald's announced the value meal after reporting slower growth in foot traffic at its restaurants. With many inflation-weary consumers recoiling from surging menu prices at fast-food chains , McDonald's, Burger King and others are competing to roll out summer deals on cheaper eats. "We heard our fans loud and clear," McDonald's USA President Joe Erlinger said in a statement. "They're looking for even more great value from us, and this summer that's exactly what they'll get."
McDonald's CEO Chris Kempczinski said in April the burger chain must be "laser-focused" on keeping prices affordable to convince customers to return. The nation's largest fast-food chain, with more than 13,500 restaurants, also announced a "Free Fries Friday" promo in which customers can get a free medium-size order of french fries with any $1 minimum purchase.
The promos are designed to counter higher menu prices at McDonald's in recent years. The average cost of a Big Mac, for example, is now $5.29, up 21% from $4.39 in 2019, according to company data. The average price of a Quarter Pounder with Cheese is $5.39, up 20% from $4.49 in 2019. Fast-food chains blame rising labor and food costs as the key factors their decision to drive up prices .
A January poll by consulting firm Revenue Management Solutions found that about 25% of people who make under $50,000 were cutting back on fast food, pointing to cost as a concern. A recent LendingTree survey found that 78% of consumers now view fast food as a luxury item that's becoming expensive.
Two of McDonald's biggest competitors, Wendy's and Burger King , have also launched value meals in hopes of increasing foot traffic to restaurants. McDonald's $5 meal likely will not last past its one-month promo time, Nick Setyan, restaurant analyst for Wedbush Securities, told CBS News.
In a separate effort to attract more customers, McDonald's in December opened a beverage-based restaurant called CosMc , with the first outlet debuting in Illinois and the company planning to open 10 locations in Texas cities Dallas, Fort Worth and San Antonio this year.
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
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