McDonald’s announced Thursday that its $5 Meal Deal will now run through December as fast-food chains continue to compete on value.
The offer—featuring guests’ choice of a McDouble or McChicken, small fries, 4-piece Chicken McNuggets, and a small drink—will extend in a majority of markets, the company said.
This is at least the second time McDonald’s has decided to extend the $5 Meal Deal. The offer began on June 25 and was originally supposed to last four weeks, according to Bloomberg. In July, the publication viewed an internal memo that showed 93 percent of U.S. stores committed to keeping the bundle beyond the initial run date. At that point, some elected to keep it through August.
McDonald’s noted some positive impacts in its Q2 earnings call. The $5 Meal Deal led to an improvement in brand perception around value and affordability and it increased trial rates in households under $45,000 and between $45,000 and $75,000. Also, Placer.ai’s research found that June 25 was McDonald’s busiest Tuesday of the year until that was re-set by Tuesday, July 2. Another benefit is that customers seem to add on to their orders; customers buying the $5 value meal end up with a $10 average check.
However, a sales bump hadn’t come yet. McDonald’s experienced negative U.S. comps in July as it lapped the popular Grimace birthday meal and shake from last year.
In addition to the $5 Meal Deal, the burger chain is launching other national offers via its app:
- 50 cents Double Cheeseburgers on National Cheeseburger Day (September 18)
- $2 McCrispy sandwich in honor of National Fried Chicken Sandwich Day (November 9)
- $1 10-pc Chicken McNuggets between November 4 to December 2—valid once per week
- Free Fries Fridays where customers can get free medium fries with any $1 minimum purchase
Franchisees are offering market-specific deals too. For instance, in Southern California, there’s a 2 for $3.99 choice of Chicken or Sausage McGriddle, Sausage Biscuit, or any size Iced Coffee. In Dallas, there’s a $5 20-piece McNugget offer, and in New England, there’s $1.99 any size frozen carbonated beverage.
“This summer, tens of millions of fans went to their local McDonald’s to enjoy our $5 Meal Deal, and it was so great to welcome them,” Joe Erlinger, president of McDonald’s USA, said in a statement. “Together with our franchisees, we’re committed to keeping our prices as affordable as possible, which is why we’re doubling down with even more ways to save. Whether you’re stopping by for breakfast, lunch, dinner or a late-night snack, we want everyone to find the food they love at a price that hits the spot. The extension of the $5 Meal Deal, and the other offerings we’re announcing for our fall line-up, are just a few of the ways we’re working hard to offer great meals at a fair price.”
McDonald’s isn’t the only one extending its value offer. Burger King announced during its Q2 earnings call in early August that its $5 Your Way Meal—which provides a reasonable gross profit margin for operators—has performed so well that franchisees agreed to push the offer into October. It over-indexes with lower and middle-income consumers and women and has an average check over $10.
