Here's the big problem with all these $5 meal deals

The Bottom Line: With McDonald’s planning a $5 value meal of its own, more brands are already jumping onto the bandwagon. But not everybody will pay $5.


McDonald's will start selling a $5 value meal next month

Franchisees gave their OK to the national value promotion, potentially setting the stage for a summertime price war as inflation-weary customers turn away from restaurants.

George Michell, who owns some of the brand’s most successful locations, claims the company is using its new franchising standards to force him to sell his restaurants.

The fast-food giant, which has shifted its focus to value, is working to convince franchisees to go along with a bundled meal featuring a McChicken or a McDouble. The plan is expected to pass.

The fast-food giant is shifting spending to digital marketing and plans to invest “hundreds of millions” into digital innovation, including new ordering channels, personalization and loyalty.

U.S. same-store sales at the fast-food restaurant giant grew 2.5% in the first quarter. But traffic is down at the chain’s restaurants amid pressure on the consumer.

The fast-food giant appears to be losing the battle for customers looking for lower prices to Burger King and Domino’s. McDonald’s wants a national value offer to change that.

The fast-food restaurant giant has an agreement to buy Alonyal Limited, the country’s franchise owner. The market has struggled since the outbreak of the Middle East conflict.

But the fast-food chain’s chief executive, who was recently given the chairman title, still makes less than he did two years ago.

While the focus on restaurant menu price inflation has centered on premium items like the Big Mac, it’s in the smaller items, with fewer deals available, where prices have increased most.

  • Page 2