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McDonald's (MCD.US) introduces new value menu in the US to continue its low-price strategy and stimulate growth

Market IntelFriday, Nov 22, 2024 9:20 am ET

1min read

McDonald's (MCD.US) unveiled plans to overhaul its value menu in the US to lure price-sensitive customers back to its restaurants. The company's new McValue menu, which includes a $5 bundle, will launch on January 7, according to a statement on Friday. They also added a "buy one, get one for $1" promotion to mix and match items.

The company is trying to spur growth after sales at the chain have fallen in recent quarters, partly due to a waning interest in pricier items from US consumers. The chain had made some progress, but then an E. coli outbreak linked to the chain's Quarter Pounder burger scared off many customers.

Company leaders, including CEO Chris Kempczinski, said on the company's earnings call that McDonald's is stepping up its efforts to provide affordable dining after losing some of its value reputation.

McDonald's new value model will replace another platform that was introduced in 2018, which sold items for $1 to $3. Now, with inflation driving up prices, affordable items in the lower range are hard to find.

As of Thursday's close, the company's stock has fallen 2.7% this year, while the S&P 500 has risen nearly 25% in the same period.

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dritu_

11/22

$5 bundle is clutch for price hunters.

SnowShoe86

MCD's been struggling lately, down 2.7% this year, while the S&P rides high. Their play on affordability could be a game-changer if it sticks, but will consumers keep coming back? I'm watching this closely before adjusting my portfolio.

BeefMasters1

Adding value's smart; $TSLA's still my main play.

InjuryIll2998

The competition's heating up in the fast food arena. With everyone hiking prices, it's hard for consumers to find those cheap eats. McDonald's might just snag some market share with their revamped value menu, but it's a gamble in these inflationary times.

PunchTornado

McValue menu sounds like a smart play. 🤑

SISU-MO

BOGO for $1? That's a tasty discount.

PvP_Noob

Hoping this revives their customer base, MCD needs it.

nrthrnbr

Remember when $1-$3 menus were the talk? Now, a $5 bundle feels like a premium service. McDonald’s aiming for that affordable rep back, but is it late to the party? The market's relentless, and these moves need some serious hustle to pay off.

BlackBlood4567

The value menu pivot by McDonald's feels like a necessary step. When consumers start prioritizing bargains over burgers, you know something's amiss. Their growth story’s hanging in the balance. Let's see if this McValue move is more than just a marketing gimmick. 🤔

11thestate

Dropping $5 bundle could be a game-changer, but inflation might be the ultimate wild card here. 💸

BenGrahamButler

Inflation's a beast, $MCD needs moves like this

racoontosser

Big M's trying to reel in those bargain hunters. The new $5 bundle and BOGO $1 sounds tempting, but will it be enough to stick to their price strategy or just a quick fix? McDonald's still got that iconic status, but this value game is getting fierce.

xX_codgod420_Xx

MCD's move feels like a Hail Mary. Gotta try new things to stay relevant, but it ain't easy.

Corpulos

E. coli stuff was a nightmare. They gotta regain trust now. Trust me, I'm holding a bit of MCD for the long haul.

qw1ns

BOGO sounds tasty, but only if they can keep quality consistent. Value and taste walk a thin line.