McDonald's extended its $5 value meal offer into December at most of its US locations, the burger chain said on Thursday.
The company launched its $5 meal deal late in June and extended it into August in a bid to retain budget-conscious customers shying away from higher fast food prices.
'Doubling Down'
Lower demand at quick service restaurants has fueled the pace of promotions, with Burger King-owner Restaurant Brands, Wendy's and Taco Bell all leaning on value meals to spark customer traffic.
"We're committed to keeping our prices as affordable as possible, which is why we're doubling down with even more ways to save," said Joe Erlinger, president at McDonald's US.
'More Traction'
McDonald's operates in 13,500 locations across the United States, according to its latest annual report.
Traffic has been stronger at McDonald's restaurants in the current quarter so far, which Jefferies analyst Andy Barish attributed to "more traction (marketing) in the $5 meal deal and other promotions".
Fall Deals
McDonald's has seen weaker performance in its past few quarters. It reported a surprise drop in sales worldwide in the three months ended June 30, its first decline in 13 quarters.
The company also announced its fleet of fall deals on Thursday, including offers for free medium fries with any $1 minimum purchase every Friday and 10-piece chicken McNuggets for $1 between November 4 and December 2.
'Tougher Economic Times'
In July, CEO Chris Kempczinski said consumers were more discriminating with their spend.
Still, McDonald's kept its 2024 operating margin forecast unchanged in the mid-to-high 40% range.
"The biggest hit for McDonald's is the low-income consumer has really cut back on visits and that is more than offsetting the typical trade down McD normally sees in tougher economic times," said Edward Jones analyst Brian Yarbrough said at the time.
