McDonald’s Extends Its Summertime $5 Meal Deal. Here’s Why

McDonald’s has announced that it is extending its summertime $5 Meal Deal to the end of December in the hopes that the fast-food giant can keep the customers coming. Let’s look at what else we know about this latest business move.

McDonald’s $5 Meal Deal Extension

According to The Associated Press, McDonald’s is extending its special promotion until December at most U.S. shops, and its fast-food rivals offering similar deals are expected to follow suit.

McDonald’s execs are also urging people to order using the app because flash sales will also be offered until the end of the year. Additionally, patrons can accrue points that, once the time-limited offers expire, can be redeemed for complimentary food.

McDonald’s $5 meal offerings were swiftly followed by rivals like Burger King, which also recently announced its meal deal is extending through October.

In June, Wendy’s, which previously provided a $5 meal bargain, began including a free Frosty in its package. This fall, Wendy’s is also providing a $5 meal deal to its customers, with no delivery fees on Saturdays.

And it isn’t just fast-food restaurants that are getting in on the action. Olive Garden has also recently revealed that its Never-Ending Pasta Bowl deal, which costs $13.99 and includes pasta, breadsticks, and soup or salad, will expire on Nov. 17.

Following a dismal first quarter marked by fewer visits to the United States and decreased order spending, notably from customers making less than $45,000 annually, McDonald’s originally announced its meal deal in June. A McDouble burger or McChicken sandwich, small fries, a four-piece Chicken McNuggets, and a small drink are all included in the $5 Meal Deal.

“Together with our franchisees, we’re committed to keeping our prices as affordable as possible,” McDonald’s U.S. President Joe Erlinger said on Thursday, Sept. 12.

Disappointing Q1 Results

The McDonald’s $5 Meal Deal was introduced in reaction to increasing consumer disapproval of the fast-food industry. Despite increasing prices driving up average checks, McDonald’s reported mixed first-quarter results, with U.S. same-store sales slightly below estimates. The organization noticed that as a result of the increasing prices, customers are becoming more economical with their spending, highlighting the importance of affordability in attracting diners.

“Affordable prices and creating memorable moments are what McDonald’s is all about,” John Palmaccio, a McDonald’s owner-operator and Operator’s National Advertising Fund Chair, said in a statement to Food & Wine. “As small business owners, it’s our responsibility to deliver great value to our local communities when they need it most. The $5 Meal Deal is the perfect complement to the everyday local deals customers can find in-store and on the app, like the 25% off any purchase of $10 or more deal that I’m offering at my restaurants in Savannah, Georgia.”

McDonald’s has pledged in recent months to resume spending on value meals, special discounts, and freebies to boost foot traffic to stores, which it hopes will further drive up sales.

“I fully expect the prices at your local McDonald’s to be an area of conversation and focus in the coming months. As it does, I hope you’ll see the programs we’re launching nationally and locally as meaningful to you. At the same time, I hope it’s helpful to see some of the common myths that I’ve encountered, and the facts that go along with them,” said the company’s president in an open letter to consumers.

For the first time since just before the COVID-19 epidemic, Burger King, Wendy’s, KFC, Taco Bell, and other fast-food companies have also started to provide value menus and promotions. Certain investors are concerned that a pricing war won’t result in a significant increase in traffic; instead, it will simply reduce the margins of the QSR industry.