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McDonald's is extending its $5 Meal Deal promotion, launched last summer, to cater to budget-conscious customers. Originally billed as a limited-time response to provide relief to inflation-strapped consumers, the promotion has gained traction with consumers demanding value from fast-food brands. The $5 Meal Deal includes a McDouble or McChicken, small fries, four-piece Chicken McNuggets and a small drink.
The move aligns with a broader trend in the industry, where major fast-food chains have battled for customers with affordable meal deals since McDonald's launched its promotion in June. Competitors, including Burger King, Taco Bell and Wendy's, have also introduced value-based promotions to retain customer loyalty amid rising food costs, inflation concerns — and even customer outcry.
In an open letter to customers last May, Joe Erlinger, president of McDonald's USA, addressed widespread reports — primarily spread via social media — that menu prices had increased more than 100% in the past five years. The letter also rebuked claims that the chain raised prices above standard inflationary rates.
"Inflationary pressures have affected all sectors of the economy, including ours," Erlinger wrote. "That's why prices for many of our menu items have risen less than the rate of inflation — and remain well within the range of other quick service restaurants."
While these deals will bring some form of relief to inflation-strapped consumers, FinanceBuzz, a financial news and information website, recently analyzed value meals at major fast-food restaurants to determine how much consumers can save by buying value meals versus purchasing the items individually, finding that McDonald's was among the top in value.
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With inflation still a stubborn reality for many consumers, McDonald's aims to continue attracting price-sensitive customers while keeping its menu appealing and accessible. The $5 Meal Deal promotional extension could further boost traffic to its locations and help drive sales during an economically uncertain time.
Read More: CNBC
