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