On Monday, McDonald’s relaunched one of its most recognizable deals: the Extra Value Meal. The move is designed to win back cost-conscious customers at a time when inflation and tariffs are pressuring wallets — and sales.
“Inflation isn’t happening at McDonald’s — we’re actually lowering prices,” McDonald’s USA President Joe Erlinger told the “Today” show. He credited the chain’s U.S.-based supply chain as a buffer against rising costs: “The vast majority of what we sell comes from right here in the USA. That makes us relatively insulated from these impacts.”
The new Extra Value Meals menu offers a 15% discount on the most popular meals and a 5% discount for all other meals, according to "Today" — including a $5 Sausage McMuffin with Egg meal, which includes hash browns and a small coffee, and an $8 Big Mac Meal that comes with medium fries and a medium drink.
The return of extra value deals comes as McDonald’s works to reconnect with low-income consumers. After two consecutive quarters of declining profits, the company reported positive earnings in August. But CEO Chris Kempczinski told CNBC that “traffic for lower-income consumers is down double digits” as more people skip meals or eat at home.
“Everyone has to eat, but not everyone has to eat out,” Erlinger said, citing a McDonald’s researcher. “Right now, people need value. They’re experiencing price increases across their whole life. This is what we can do for the American consumer.”
McDonald’s discontinued the Extra Value Meals menu in 2019, but the company has tested its way back into value offerings with last summer’s $5 meal deal and app-exclusive promotions. Kempczinski told “Today,” franchisees noticed a gap: nearly half of transactions came from customers who were not purchasing value items.
After posting two consecutive quarters of profit decline, the company’s earnings turned positive in August, yet Kempiczinski told CNBC despite the increase, the company was still concerned about the health of the low-income consumer.
“Extra Value Meals are back. I think it’s a great day at McDonald’s,” he said. The menu is expected to run through the end of the year, according to CNN.
Fast-food rivals’ deals
KFC recently launched $5 bowls. Subway introduced a “Meal of the Day” deal that includes a sandwich, chips or cookies, and a drink for about $7 for a 6-inch sub or $10 for a footlong. Taco Bell tested Luxe Cravings Boxes at $5, $7 and $9 price points earlier this year.
The return of McDonald’s Extra Value Meals could put pressure on competitors across the fast-food industry. No chains have announced new promotions in response, but similar rollouts could follow as restaurants compete for price-sensitive customers.