McDonald’s customers could be seeing even lower prices from the global fast-food company, according to a recent report from Bloomberg. The report noted that the company was contemplating a new $5 deal in a recent first-quarter earnings call, due to its results being “lower than initially expected.”
According to Restaurant Business, McDonald’s had gotten the Coca-Cola company in on the plan to sweeten the proposed deal to the National Owners Association (NOA) for approval.
“McDonald’s has had such strong sales in recent years that they didn’t need it,” said CEO of Kalinowski Equity Research, Mark Kalinowski, to Bloomberg. “Now that the consumer has shown by action that they’re demanding value more than they were even six months ago, McDonald’s is changing with the times.”
McDonald’s low sales results are likely due to the recent consumer reactions towards rising prices. In particular, the low-income crowd which has been found to frequent these fast-food businesses often has vocally begun to pull away due to these high prices.
McDonald’s Chief Executive Officer Chris Kempczinski told investors that the company was “laser-focused on affordability.” McDonald’s chief financial officer Ian Borden added that it was obvious that McDonald’s was getting hit due to affordability being an “area where consumer expectations are heightened.”
Additionally, Kempczinski wondered about a standard national deal similar to other competitors, rather than the local McDonald’s value meals the company offers across the US.
Currently, nothing about the deal has been finalized. That said, people familiar with the issue alleged to Bloomberg that it could include a McChicken or McDouble, a four-piece McNugget, fries, and a drink. It’s unknown when this value deal could drop, but according to Business Insider, the deal would have a huge impact considering it’s less expensive than a Happy Meal.
Regardless, while this deal would no doubt be a huge game changer it would last forever. Bloomberg reported that the deal could last no longer than a month.
Hopefully, if the reception to this new deal is a success, fast-food giants will keep them going. That said, they will likely have to if they want to maintain customers that are holding tighter onto their cash.
