McDonald’s is introducing value meals in its U.S. stores to help offset an increasingly difficult environment for consumers, two people familiar with the matter told CNBC.
The sources said the $5 meal could include four items: a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink. Bloomberg News was the first to report on the cheap meal.
The potential new offering comes at a time when low-income consumers are starting to reduce their spending, especially on fast food brands.
Mentions of low-income consumers in company earnings calls reached their highest levels in nearly two years, according to Bank of America data. Executives from McDonald’s to Wendy’s
Dave and Buster have observed moderation in spending.
McDonald’s recently reported a mixed first quarter, as comparable sales in the U.S. fell slightly short of expectations. Higher prices helped boost average checks, but some consumers stopped buying as a result of higher costs.
“Consumers continue to be more demanding with every dollar they spend, as they face higher prices on their daily expenses, putting pressure on the industry.” [de restaurantes de servicio rápido]CEO Chris Kempczinski said of the company’s April 30 results.
He added that McDonald’s needs to “focus” on affordability to attract diners.
On the call, Kempczinski said the company was working on a U.S. bid, and the company’s CFO, Ian Borden, said the U.S. leadership team was working closely with owners and operators in this environment.
McDonald’s corporations and franchisees, who operate 95% of McDonald’s locations and have a say in such promotions, often disagree about promotions that could affect the owners’ profits.
McDonald’s’ initial proposal for a $5 meal did not clear the necessary hurdles, and additional details are now being discussed, according to a person familiar with the process. Another person said Coca-Cola added marketing money to the equation to make the deal more attractive.
McDonald’s declined to comment to CNBC. Coca-Cola did not immediately respond to a request for comment.
this condition Originally published in English by Kate Rogers For our sister network CNBC.com. For more from CNBC enter here.
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