By Evie Liu
McDonald's launched a slew of deals in a continuing effort to attract customers discouraged by higher prices and frightened by this fall's outbreak of E. coli.
Starting Jan. 7, the Golden Arches will introduce a platform called McValue in restaurants across the country, the company said in a Friday statement. A $5 meal deal, which was rolled out in the summer, has been officially extended through next summer and will now be part of the McValue platform.
The $5 package includes a McDouble or McChicken sandwich, small fries, a four-piece serving of Chicken McNuggets, and a small soft drink.
The McValue platform will also allow diners to buy one item and add another one for $1 from a selected menu. The list includes breakfast foods like Sausage McMuffin and Sausage Burrito, as well as lunch or dinner items like a six-piece Chicken McNuggets and Double Cheeseburger.
There will also be local deals and exclusive offers for app users.
"When it comes to value, we know there's no one-size-fits-all," said Joe Erlinger, president of McDonald's USA, in a statement, "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 is trying to fuel growth in response to sluggish sales in recent quarters. Part of the problem is that consumers have pulled back from restaurant spending due to higher prices. Fast-food chains have been under particular pressure because consumers are less convinced that they offer affordable meals.
McDonald's had gained traffic back thanks to the $5 meal deal and new menu items like the Chicken Big Mac. But an October E. coli outbreak linked to the slivered onions on its Quarter Pounders scared diners away and added to the pressure on the burger chain again.
While the Food and Drug Administration recently concluded that "there does not appear to be a continued food safety concern related to the outbreak at McDonald's restaurants," retail-tracking data suggest store traffic at McDonald's still hasn't fully recovered.
Restaurant Business reported last week that McDonald's is investing more than $100 million in marketing and targeted financial support for franchisees in states most affected by the E. coli outbreak, citing an internal message.
McDonald's stock edged up 0.4% in Friday trading, while the S&P 500 was marginally higher. Shares are down 2.5% this year.
Write to Evie Liu at evie.liu@barrons.com
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(END) Dow Jones Newswires
November 22, 2024 10:59 ET (15:59 GMT)
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