March 11 (Reuters) – McDonald’s will introduce menu items priced at $3 or less, along with $4 breakfast meal deals in the U.S., starting in April, the Wall Street Journal reported on Wednesday, citing people familiar with the discussions.
The burger chain is looking to attract diners worn down by economic woes. It has been sharpening its focus on affordability as consumers become more price-conscious. Rivals such as Burger King are also intensifying efforts with more economical menu options.
McDonald’s has been investing heavily in marketing cheaper meals and said last month its value push was helping bring back lower-income customers.
The company launched its $5 meal in June 2024 as a limited-time offer, but extended it as consumers continued to prioritize value due to higher costs of essentials.
The new offers — internally called “McValue 2.0” — include a McMuffin, a hash brown and coffee breakfast bundle, and low-priced items such as a sausage biscuit or 4-piece chicken McNuggets, the Journal reported, citing an internal company message.
McDonald’s did not immediately respond to a Reuters request for comment.
The company last year began subsidizing franchisees’ “extra value” meals as costs of some commodities such as beef remained high, but CEO Chris Kempczinski said last month that the company would not subsidize pricing on a permanent basis.
Last year, McDonald’s offered a 15% discount on combo meals and introduced $5 and $8 specials.
McDonald’s and other fast-food chains had raised menu prices following the pandemic to offset higher input costs.
In February, McDonald’s beat Wall Street estimates for fourth-quarter global comparable sales and profit, as meal deals and strong marketing promotions pulled in budget-strapped U.S. diners.
(Reporting by Sanskriti Shekhar and Juveria Tabassum in Bengaluru; Editing by Vijay Kishore and Alan Barona)
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