McDonald's is stepping up its value offer with new McValue platform, coming to a restaurant near you in January

MW McDonald's is stepping up its value offer with new McValue platform, coming to a restaurant near you in January

By Ciara Linnane

Platform will include $5 value meal and a new Buy One, Add One for $1 offer on popular breakfast, lunch and dinner items

McDonald's Corp. said Friday it will launch a new value platform - called McValue - in 2025, that will include its current popular $5 Meal Deal, as its customers continue to feel the pinch of a higher cost of living.

The fast-food giant $(MCD)$ had already said it would extend the $5 value meal that it launched in June through December as consumers seek budget-friendly meal options. On Friday, the company said the $5 Meal Deal will be extended through next summer and become part of the McValue platform.

The meal allows customers to purchase the following items for $5: four Chicken McNuggets, a small order of fries, a small soft drink and the choice of either a McDouble or a McChicken sandwich.

McValue will include in-app offers, along with local food and drink deals, as well as a brand new Buy One, Add One for $1 offer on popular breakfast, lunch and dinner items.

"When it comes to value, we know there's no one-size-fits-all. We've worked closely with our franchisees to create a new platform that will let our customers define value on their own terms," McDonald's USA President Joe Erlinger said in prepared remarks.

The platform will be launched on Jan. 7.

McDonald's isn't the only chain turning to deals to win business. Subway temporarily dropped the price of its footlong subs during a recent stretch, while Shake Shack $(SHAK)$ is offering a Sunday deal for free Chicken Shack sandwiches if customers spend $10 or more on other items.

See also: What's next for McDonald's after the $5 value meal? Perhaps a McSmart meal.

McDonald's has struggled this year along with other operators in the quick-service restaurant space, as sales have slowed in many markets as consumers prefer to eat at home, given the higher cost of eating out.

In its most recent earnings report in late October, McDonald's also had to contend with the fallout from an E. coli outbreak that thrust the burger chain into the spotlight.

Chief Executive Chris Kempczinski told analysts on the company's earnings call that cases were related to slivered onions in a handful of U.S. states. "While the situation appears to be contained, and though it didn't affect Q3 numbers, it's certainly an important development, which I know is on many of your minds," he said.

But the company also acknowledged pressure on sales across the industry.

"While we anticipated a challenging environment in 2024, our performance so far this year has fallen short of our expectations, said Kempczinski.

Comparable sales declined 1.5% to miss the FactSet consensus of a 0.6% decline. However, comparable sales in the U.S. increased 0.3%.

McDonald's stock is down slightly premarket and has fallen 2.7% in the year to date, while the S&P 500 SPX has gained 24.7%.

Read: Restaurants are struggling as price increases backfire. But these chains are feeling pretty good.

-Ciara Linnane

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November 22, 2024 07:35 ET (12:35 GMT)

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