McDonald’s Prepares for a Hot Summer and Announces an Attractive $5 Meal Bundle Starting June 25. The promotion, which includes four items - a McDouble or McChicken, small fries, a small drink, and four Chicken McNuggets - aims to attract price-conscious consumers and compete with other fast-food chains that are enhancing their offerings.

The decision to launch such an offer nationwide follows McDonald's observation that it had lost its leadership position in terms of affordability in some US markets. According to the company, the franchisees, who make up the majority of McDonald's operators, are now back to pre-pandemic profitability levels and can afford to invest in such value offers. This is intended to help increase customer traffic, which has declined by 3.5% in the US in the first quarter of this year.

The franchisees, who are responsible for pricing in their restaurants in the USA, have widely supported the new offer, although internal discussions about the components of the deal and its economic justification took place. A McDonald's operator emphasized in an email that it is important to regain lost momentum.

The advertising measures are supported by Coca-Cola with 4.6 million US dollars to subsidize the costs for the promotion. This is part of an ongoing partnership in which Coca-Cola regularly coordinates marketing programs with its customers.

The Fast-Food Industry Faces Challenges Such as High Inflation Rates and Rising Food Prices, Leading Consumers to Eat Out Less Frequently. Consequently, Many Chains Are Intensifying Their Promotional Offers to Regain Customers. For Instance, Jack in the Box Has Recently Announced a Deal Including Snacks Under 4 US Dollars and Plans More Promotions for the Remainder of the Year.

Casual dining chains such as Chili's and Applebee's are increasingly trying to attract fast-food customers with deals. Since 2018, McDonald's itself has been offering a tiered value menu with prices of $1, $2, and $3, although the number of items on this list has decreased in response to inflation.

The new $5 deal from McDonald's is a strategic move to close the affordability gap while also strengthening brand loyalty at a time when consumers need it most.