That $5 McDonald's value deal might not be cheap enough

McDonald's has extended its $5 value meal promotion beyond July, initially launched to attract customers amid rising inflation and declining foot traffic in fast-food restaurants. The promotion has reportedly increased customer visits and average order values, but executives acknowledge the need for more comprehensive value offerings to appeal to budget-conscious consumers. CEO Chris Kempczinski noted that while McDonald's is still viewed as a value leader, the gap with competitors has narrowed. Other chains, like Taco Bell and Wendy's, have also introduced or adjusted their value menus in response to inflation, with Taco Bell launching a Cravings Value Menu featuring items priced at $3 or less. Analysts suggest that McDonald's needs a broader and more permanent value menu rather than relying on temporary deals like the $5 meal. BTIG analyst Peter Saleh indicated that it may take time and sustained advertising to effectively promote any new permanent offerings. The fast-food industry is facing challenges as inflation has disrupted traditional value programs, prompting consumers to rethink their purchasing habits.