McDonald's executives focus on value meal promotions to win back consumers after sales decline.

From CNBC: 2024-07-29 16:18:33

McDonald’s executives are focusing on deals to win back consumers after a tough second quarter. President Joe Erlinger says prices are too high and urges a long-term mindset. Sales declined in all segments, including a 0.7% drop in the U.S. market. The company will extend its $5 value meal offer in most U.S. markets after positive feedback.
Erlinger notes challenges in the U.S., including negative guest counts and declining check averages. Although losing traffic share, trial rates for the value meal are highest among low-income consumers. McDonald’s plans to extend the $5 value meal beyond the original end date, with most locations voting to continue the promotion.
Executives are working with franchisees to assess the profitability of the value meal. Erlinger emphasizes the importance of closing the affordability gap and making decisions to boost momentum through the rest of the year. McDonald’s aims to compete effectively going into 2025 with a solid plan.



Read more at CNBC: Executives address value and prices