McDonald's is extending its $5 value meal until December at most U.S. stores, a move that rivals are likely to follow.
McDonald's introduced the deal in June after a disappointing first quarter that saw fewer U.S. visits and lower spending per order, particularly from customers earning less than $45,000 per year. The $5 Meal Deal includes a McDouble burger or McChicken sandwich, small fries, a four-piece Chicken McNuggets and a small drink.
"Together with our franchisees, we're committed to keeping our prices as affordable as possible," McDonald's U.S. President Joe Erlinger said Thursday.
As grocery price inflation has slowed, more people are choosing to eat at home. U.S. restaurant sales were up slightly in July, according to the U.S. Census Bureau. But that was largely because of higher menu prices. Adjusted for inflation, restaurant sales fell 0.7% from July 2023, according to the National Restaurant Association.
Rivals like Burger King quickly followed McDonald's with their own $5 meal deals. Burger King recently extended its deal through October.
Wendy's, which already offered a $5 meal deal, started throwing in a free Frosty in June. Now, it's offering a $5 meal deal targeted at college football fans, with no delivery fees every Saturday this fall.
The deals are lifting store traffic. Placer.ai, which uses cell phone data to monitor retail traffic, said U.S. visits to McDonald's rose 2.4% in June after the $5 meal deal was introduced and have remained elevated ever since.
Placer.ai said Taco Bell saw a 12.3% increase in visits the week of July 29 when it offered free drinks to celebrate the 20th anniversary of its Baja Blast.
Fast-food restaurants aren't the only ones offering deals to get customers in the door. Olive Garden recently announced that its Never-Ending Pasta Bowl special -- which includes soup or salad, breadsticks and pasta for $13.99 -- will run through Nov. 17.
McDonald's said it will also offer other deals this fall, including free medium fries every Friday with a $1 minimum purchase and $1 10-piece Chicken McNuggets between Nov. 4 and Dec. 2.
