:max_bytes(150000):strip_icc()/GettyImages-2179715449-27206dcbe9ab4f4b8fdde178f591c64d.jpg "McDonald’s Is Reviving the Extra Value Meal. The Fast-Food Competition Could Follow")
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Key Takeaways
- Amid concern McDonald’s isn’t always perceived as affordable, the company announced plans to bring back Extra Value Meals.
- The eight specials, slated to launch Sept. 8, will save consumers about 15%, McDonald’s said in a press release.
- The company’s recent focus on value will likely prompt competitors to deepen discounts, UBS analysts said.
McDonald’s is desperate to reclaim its reputation as a value leader. Its latest tactic: reviving a promo from the 2010s.
The company will launch Extra Value Meals, which cost 15% less than purchasing bundled items individually, on Sept. 8, McDonald’s (MCD) said Tuesday. The announcement comes weeks after CEO Chris Kempczinski said some consumers don’t see the Golden Arches as affordable after “core menu” prices crept up.
It also follows other efforts to get price-minded customers in the door, including the reintroduction of the Snack Wrap and $5 meal deals. Like its competitors, McDonald’s has recently launched a number of specials in an attempt to reverse traffic declines among lower-income consumers, who are coming in less for breakfast.
McDonald’s promos are expected to have an industrywide impact, UBS said in a research note Monday. Other fast-food groups will likely deepen discounts as they compete for consumers who are cutting back on dining out, the note said.
Meals That Are ‘In the McDonald’s DNA’
The Extra Value Meals will offer savings to customers who aren’t tapping into existing promotions via the McDonald’s app or McValue menu, Kempczinski said on CNBC Tuesday. About half of restaurant transactions currently fall in that category, he said.
“Extra Value Meals is one of those things that’s kind of in the McDonald’s DNA,” Kempczinski said on CNBC. “When you drive into a McDonald’s you say ‘I want the Number One’ or ‘I want the Number Four.’ And people have an expectation to see a discount there.”
Three of the eight new Extra Value Meals are anchored around breakfast items, with the company charging $5 for an egg and sausage sandwich, hash browns and small coffee, according to a press release.
McDonald’s did not immediately to a question about asked how long Extra Value Meals will be around. They were last phased out in 2019, according to USA Today.
