Beginning next month, the fast food giant will debut a series of new discounts that include meals that cost $3 and less, The Wall Street Journal (WSJ) reported Wednesday (March 11), citing sources familiar with the matter.
“We have achieved incredible progress together and remain committed to meeting ever-changing customer needs,” McDonald’s said earlier this week in a message to franchisees that was seen by the WSJ.
The report notes that the company is also preparing new $4 breakfast meal deals as it pushes back against a perception among customers that it no longer provides good value.
PYMNTS has contacted McDonald’s for comment but has not yet gotten a reply.
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McDonald’s introduced $5 meal deals in 2024 and last year added a range of $1 options available to diners who bought a full-priced item. According to the WSJ, the company says these moves have been bearing fruit, with many lower-income consumers purchasing combo meals and consumers finding the menu more affordable.
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“We absolutely are going to make sure that we are protecting our leadership position in value,” CEO Chris Kempczinski said on a February investor call, per the WSJ.
The effort comes as American consumers are dealing with financial stressors such as rising food costs. New inflation data shows that food prices rose 3.1% last month, driven by a 2.4% increase in the food at home category (groceries) and a 3.9% uptick in meals away from home, or meals eaten in restaurants.
In other fast food news, PYMNTS wrote recently about the aggressive effort by restaurants within that sector to adopt artificial intelligence (AI), noting that these companies are deploying the technology as an operational tool to shore up margins in one of the most cost-compressed parts of the economy.
Around 70% of restaurant operators are either actively using or piloting AI to boot loyalty programs and employee workflows, while 8 in 10 restaurant executives say they plan to up their AI spending in the next fiscal year, according to Deloitte.
“The push comes as restaurant operators face mounting financial pressure. The industry is facing declining sales and lower traffic across many chains, making efficiency investments a strategic priority,” the report said.
“Large restaurant brands are now applying AI across ordering, marketing, supply chain management and labor planning as they search for ways to run thousands of locations with greater operational precision.”
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