(Reuters) – McDonald's Corp. said on Thursday it will begin offering $5 meal sets at some of its restaurants across the U.S. for a limited time starting June 25. Fast food chains are increasing the number of cost-effective menu items to encourage consumption among low-income earners.
Rival Burger King Inc, owned by Restaurant Brands International Inc, is also considering a $5 “Your Way Deal” as companies focus on improving offers and promotions to counter inflation as more customers opt to dine at home.
McDonald's Value Deal includes a McDouble or McChicken sandwich, small fries, four Chicken McNuggets and a small soft drink for $5.
Select restaurants in Alaska, California, Guam, Hawaii, Nevada, New York (Manhattan only) and Washington may offer the McDouble meal option for $6.
McDonald's is also bringing back “Free Fries Fridays,” an app-only offer that gives customers a free medium-sized fry with any purchase of $1 or more through the end of 2024.
Picky shopping hurt results at McDonald's and KFC-parent Yum Brands in their latest quarterly reports, while promotions at Domino's boosted sales.
Lower-income Americans have less disposable income, while menu prices across the food industry have risen over the past year as companies seek to contain rising commodity and supply chain costs.
In late May, McDonald's U.S. president Joe Erlinger wrote an open letter denouncing reports of rising Big Mac prices as painting an inaccurate picture of the company.
Meanwhile, major retailers such as Target, Walmart and Kroger have kept prices on everyday items low, accelerating the shift to eating at home.
(Reporting by Savyatha Mishra in Bengaluru; Editing by Sreeraj Kaluvilla)
