McDonald’s is rolling out a new affordability strategy to help consumers battling prolonged inflation. The fast-food giant announced a revamped value menu to address the financial strain on American household budgets. “We have achieved incredible progress together and remain committed to meeting ever-changing customer needs,” McDonald's wrote in a recent internal memo.
The updated menu will officially replace the chain's previous buy-one-add-one promotions. Customers will soon see items like a four-piece Chicken McNuggets or a Sausage Biscuit priced at $3 or less. Various breakfast meals will also be available for $4.
Internal memos show unanimous alignment between corporate leadership and franchisees to tackle the ongoing affordability issue. Store locations are scheduled to begin staff training on the new deals in the coming weeks. CEO Chris Kempczinski emphasized this priority during a February investor call.
“We absolutely are going to make sure that we are protecting our leadership position in value,” Kempczinski stated. This move comes as a recent Popmenu poll reveals that 68% of U.S. consumers plan to cut back on restaurant dining due to inflation. A McKinsey analysis noted that burger and American-style food establishments would face the most severe impacts from this consumer pullback.
“As I’ve said before, and I will say again, McDonald’s is not going to get beat on value and affordability,” Kempczinski told analysts. “It’s in our DNA and we will remain agile to respond as appropriate to a dynamic competitive landscape.” The company already made significant strides last year with its $5 meal deal and the highly anticipated revival of its Monopoly sweepstakes.
These strategic, lower-priced promotions have successfully driven traffic back to McDonald's locations across the country. The approach resulted in a 6.8% increase in fourth-quarter U.S. sales. This impressive growth handily beat the 4.9% increase that industry analysts had originally predicted.