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.
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.
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% |
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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.
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