California McDonald’s franchisee Scott Rodrick joins ‘Varney & Co.’ to discuss California’s highly controversial $20 minimum wage hike.
McDonald’s Corp. is asking its U.S. franchisees to consider offering a $5 meal deal in an effort to convince price-conscious customers to return as fast food restaurants see sales dip due to inflation driving more folks to eat at home.
The proposed combo could include a McDouble or a McChicken along with fries and a drink, people familiar told Bloomberg, which first reported the plans. The outlet said this is the second time McDonald’s has floated the budget option to U.S. store owners.
![McDonald's restaurant in Virginia](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2022/06/931/523/166744cb-McDonalds-Restaurant-Chain-2.jpg?ve=1&tl=1)
Fast food restaurants are seeing sales dip as more inflation-hit consumers opt to eat at home. (Reuters/Joshua Roberts / Reuters Photos)
Global restaurant chains such as McDonald’s and Starbucks have seen lower-income customers opting to eat more meals at home amid a cost-of-living crisis, forcing the companies to offer steeper promotions to attract them to their outlets.
MCDONALD’S LOOKING TO BEEF UP WITH LARGER BURGERS
McDonald’s, which has a higher exposure to the lower-income cohort, saw its global sales growth slowing for the fourth straight quarter.
![The exterior of a McDonald's in Kuala Lumpur, in Malaysia.](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2023/12/931/523/McDonalds-Malaysia-2.jpg?ve=1&tl=1)
McDonald’s plans for a budget-friendly combo come as fast food stores see customers opting to eat more meals at home. (Mohd Samsul Mohd Said/Getty Images / Getty Images)
MCDONALD’S CEO: CALIFORNIA MINIMUM WAGE HIKE DRIVING LABOR INFLATION
“I think it’s important to recognize that all income cohorts are seeking value,” CEO Chris Kempczinski said last month on a post-earnings call.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
MCD | MCDONALD’S CORP. | 275.07 | +7.12 | +2.66% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
McDonald’s shares were up about 2% at $272.80 following the news. The company did not immediately respond to FOX Business‘ request for comment.
Reuters contributed to this report.
Source link