McDonald’s Strives to Rebuild Its Reputation for "Affordability"

This move represents McDonald’s latest effort to rebuild its reputation for "affordability," but previously, its "affordable" reputation had left cash-strapped consumers feeling strained. McDonald’s stated that the newly launched "value" meals have seen improvements, but many consumers still believe that McDonald’s meal prices are generally too high.

"Customers have told us they need more everyday value and affordability that reflects the McDonald’s brand," said Joe Erlinger, head of McDonald’s U.S. business, in an internal message to employees after the company’s earnings release in early August.

Fast-food chains are struggling to attract inflation-weary customers. According to market research firm Black Box Intelligence, since the beginning of this year, traffic at U.S. McDonald’s restaurants has decreased by 1.7%, while overall fast-food traffic has declined by 2.7%.

McDonald’s U.S. same-store sales grew in the most recent quarter, ending two consecutive quarters of decline, which was a welcome change for the company. However, Erlinger noted in an internal email that traffic remains challenging, with the company’s quarterly traffic falling short of expectations.

$10 Meals to Be Reduced to $8.50

McDonald’s meals cover breakfast, lunch, and dinner, typically including a sandwich or chicken nuggets, a hash brown or fries, and a coffee or cold drink. At most U.S. McDonald’s locations, meal prices are lower than the cost of individual items, though discount levels vary.

McDonald’s newly reduced-price meals include value meals, cheeseburgers, McNuggets, McChicken, McDouble, and other breakfast sandwiches. The new pricing will take effect in early September, with discounts lasting until early next year.

For example, under the price reduction policy, a meal currently priced at $10 will be reduced to $8.50. Starting in early September, McDonald’s will introduce a $5 Sausage Egg McMuffin and an $8 meal. Then, from November, it will launch $5 and $8 Sausage Egg Cheese McGriddles and 10-piece McNuggets meals.