McDonald’s is preparing another major push to win back value-conscious customers in the U.S., with new affordable menu options, expanded digital deals, and restaurant improvements expected to drive stronger performance in 2027.
The burger giant reported a 0.2 percent decline in domestic same-store sales during the third quarter, although performance improved as the period progressed. Comparable sales turned positive in September after declining slightly in July and August, offering early evidence that recent changes to the company’s value and marketing strategies are resonating with customers.
Globally, same-store sales increased 1.5 percent, and system sales grew 4 percent. International markets continued to outperform the U.S., supported by value platforms, menu innovation, and marketing campaigns.
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CEO Chris Kempczinski said the company is encouraged by improvements in domestic traffic during September and October, but additional work is necessary to restore consistent sales growth.
A major priority is addressing what McDonald’s considers the missing component of its value strategy. The company believes its existing meal bundles and everyday menu prices are competitive, but entry-level offerings have not adequately served customers seeking the lowest-priced options.
Last week, McDonald’s began an eight-week test of two affordable menu structures across approximately 1,900 restaurants in several U.S. regions. One features mix-and-match bundles that allow customers to select combinations of products. The other provides fixed bundles with predetermined items at attractive prices.
Franchisees operating another 4,000 restaurants have independently introduced similar offerings ahead of the formal test results. Combined, the initiatives cover more than 40 percent of the domestic system.
McDonald’s plans to evaluate customer response, incremental traffic, sales, and franchisee economics before introducing a national program in early 2027.
“Particularly for that low-income consumer, they’re looking for great entry-level value, and we have not had that in place to the level that we are satisfied with,” Kempczinski said.
The initiative builds on the company’s existing $5 and $6 meal deals and Extra Value Meals, which returned more than a year ago. Unit sales of the chain’s leading Extra Value Meals have increased approximately 7 percent year-over-year, according to CFO Ian Borden.
Recent promotions included a $5 Sausage McMuffin with Egg meal and an $8 Big Mac meal. Those offerings helped improve traffic and average checks during the quarter.
McDonald’s also shifted marketing investments toward its established value platforms and restored certain digital promotions that had previously been reduced.
Offers such as a $2 breakfast sandwich and free fries with a minimum $1 purchase helped attract additional transactions from loyalty members and customers who had stopped visiting regularly.
Borden said the initial response exceeded expectations for incremental traffic and sales, helping reverse negative trends experienced during the second quarter and early third quarter.
The importance of those promotions extends across McDonald’s digital ecosystem. The company has more than 45 million U.S. loyalty members, with loyalty participants accounting for nearly 30 percent of its customer base.
Customers typically increase their visit frequency approximately 2.5 times during the first 12 months after joining the loyalty program. Digital transactions also account for roughly one-third of McDonald’s sales.
Kempczinski acknowledged that changes to established promotions had affected some of the company’s most valuable customers.
“That frequent customer is super sensitive to digital offers. And I think what we learned there is we’ve got to make that right,” he said.
Another opportunity is emerging through McDonald’s specialty beverage platform, which is expanding internationally and attracting younger customers during traditionally slower periods.
The platform now operates in nearly 18,000 restaurants across the U.S., Canada, Germany, and Australia.
In the U.S., transactions containing specialty beverages carry average checks approximately 50 percent higher than the overall daily average. Most specialty beverage purchases occur after lunch, providing incremental demand during periods when restaurants typically have additional capacity.
The August introduction of the Red Bull Dragonberry Energizer contributed to the category’s performance. During its six-week advertised launch, the beverage sold more units than any other product in the specialty beverage lineup.
International results have progress as well. Australia exceeded expectations following its July launch, and Germany experienced strong demand for its limited-time Italo Spritz.
McDonald’s expects to introduce specialty beverages in more than 7,000 additional European restaurants by mid-2027. The company is targeting an additional 1.5 percentage points of beverage market share by 2030.
Expansion will also require operational investments. Kempczinski said existing kitchen configurations lack sufficient space to support the company’s full beverage ambitions, making expanded beverage preparation areas a significant component of upcoming restaurant remodels.
Those improvements are part of McDonald’s NEXT, the multiyear growth strategy introduced during the company’s September Investor Day.
The initiative includes restaurant modernization, enhanced hospitality training, new kitchen equipment, and technology intended to simplify operations.
McDonald’s recently launched Make It Golden, its largest restaurant training initiative, focused on improving food quality, hospitality, and customer satisfaction. The company expects training to reach more than 18,000 restaurants during the first quarter.
It is also expanding testing of ArchIQ, a smart ordering system intended to give restaurant employees more time to interact with customers. McDonald’s expects the technology to reach a majority of U.S. restaurants by the end of 2027.
Hundreds of domestic restaurants are scheduled for remodeling next year, with the company targeting more than 5,000 remodels annually worldwide beginning in 2028.
Menu innovation is another component of the strategy. McDonald’s has begun operational pilots for hand-breaded chicken in the U.S. and Ireland, with advertised sales tests planned at approximately 100 U.S. restaurants in early 2027.
Initial testing in Ireland is examining chicken strips, sandwiches, and wings to determine which combinations deliver the strongest sales without creating excessive operational complexity.
Kempczinski said early results from approximately 10 Irish restaurants suggest wings could provide additional sales opportunities, although the company needs more information before making larger commitments.
Internationally, McDonald’s reported 1.4 percent comparable sales growth in operated markets, led by Australia and Germany. International developmental licensed markets posted 4.2 percent growth, with Japan extending its streak to 44 consecutive quarters of positive comparable sales.
France continued to underperform expectations, and disruptions associated with the war in Ukraine affected restaurant operating hours. McDonald’s also experienced softer results in China as third-party delivery companies reduced promotional subsidies.
Despite those challenges, the company continues to gain or maintain market share across most of its largest international markets.
McDonald’s now expects approximately 2,500 gross restaurant openings worldwide in 2026, down from its previous target of 2,600. Its projection of roughly 2,100 net openings is unchanged.
The company is also progressing toward its goal of having 98 percent of its global restaurant portfolio franchised by 2028, having refranchised approximately 175 restaurants this year.
One challenge heading into 2027 will be balancing affordability with continued cost pressures. McDonald’s expects mid-single-digit food and paper inflation next year, complicating decisions around pricing and franchisee profitability.
Kempczinski said the company must exercise caution after experiencing the consequences of pricing decisions over the past 18 months. Franchisees are working with the company to determine which menu items require particularly competitive prices and where modest increases might be appropriate.
Despite encouraging traffic trends, McDonald’s has not committed to delivering stronger fourth-quarter comparable sales than the third quarter. The immediate objective is to finish 2026 with a healthier domestic business and establish a foundation for sustained improvement.
Kempczinski said the company’s success will ultimately depend on translating its investments into tangible improvements at the restaurant level.
“At McDonald’s, nothing is real until it’s real in the restaurants,” the CEO said.
