McDonald’s extends $5 value menu until December: A strategy to regain customers

McDonald's is once again resorting to pricing measures to compensate for the declining customer traffic in US restaurants and to win back price-conscious guests. After many consumers retreated due to increased restaurant prices, the fast-food giant will extend its $5 value menu promotion through December. The $5 menu, initially introduced in the summer, marks the second extension of this discount campaign. The goal is to particularly appeal to lower-income customers, who increasingly perceive McDonald's as too expensive. Under this offer, guests receive a four-piece nuggets box, a McChicken or McDouble sandwich, small fries, and a small soft drink. According to Investing.com, financial institution Citi on Friday raised the price target for McDonald's Corporation stock from $275 to $301, in anticipation of positive quarterly results. The stock rose approximately 1.44% in late trading on the same day. The recent price increases, which many chains had to implement due to rising food prices and inflation, have raised questions among price-conscious customers about the affordability of fast food. According to McDonald's, the price of a Big Mac has risen by 21% since 2019, with some price increases portrayed even more drastically on social media. McDonald’s is thus following a similar strategy as Starbucks and other chains that are trying to win back customers with discount promotions. Further offers are to be expected in the coming weeks, according to the company.