McDonald's Aims to Lure Back Low-Income Customers With Value Menu Revival

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McDonald's Aims to Lure Back Low-Income Customers With Value Menu
The McDonald's logo is displayed at a McDonald's restaurant on July 22, 2024 in Burbank, California. Mario Tama/Getty Images

McDonald's is cutting prices on some of its most popular combo meals, hoping to bring back customers who have stopped visiting due to rising costs.

Beginning September 8, the fast-food giant will bring back its Extra Value Meals at locations nationwide.

According to CBS News, the meals will include well-known items like the Big Mac, Sausage Egg and Cheese McGriddles, 10-piece Chicken McNuggets, and McCrispy sandwiches—each bundled with fries or hash browns and a drink.

For a short period, customers can enjoy deals such as a $5 Sausage McMuffin meal or an $8 Big Mac meal, though prices will be about a dollar higher in places like California, Alaska, Hawaii, and Guam.

The price cuts aim to tackle a big problem: low-income customers are visiting less often.

McDonald's CEO Chris Kempczinski said on a recent investor call that traffic from households earning under $45,000 a year is down by almost double digits.

"Too often, if you're that consumer, you're driving up to the restaurant and you're seeing combo meals priced over $10," he said. "That absolutely is shaping value perceptions in a negative way."

McDonald's Launches Deals to Fight Price Backlash

At one McDonald's close to the company's Chicago headquarters, a 10-piece McNugget meal is priced at $10.39.

McDonald's is not alone in this trend. Fast food traffic across the U.S. dropped nearly 1% in the second quarter, as more people chose to eat at home.

Rising inflation, higher labor and food costs, and pricing inconsistencies have made many once-affordable meals feel out of reach.

McDonald's says its average menu prices jumped 40% between 2019 and 2024, largely due to increases in the cost of labor, packaging, and ingredients, AP News reported.

The company faced criticism earlier this year when a viral post showed a Big Mac meal priced at $18 in Connecticut. McDonald's called it an "exception," noting that franchisees set prices at most US locations.

Earlier in the year, McDonald's rolled out promotions including a $5 Meal Deal and a buy-one-get-one-for-$1 offer. Those deals will remain active alongside the returning Extra Value Menu.

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