Treasury Wine Estates Shares Plunge on Earnings Warning Amid U.S. and China Weakness 
Maersk Vessel Successfully Transits Red Sea After Nearly Two Years Amid Ongoing Security Concerns 
Instacart Stock Drops After FTC Probes AI-Based Price Discrimination Claims 
Citi Appoints Ryan Ellis as Head of Markets Sales for Australia and New Zealand 
Sanofi’s Efdoralprin Alfa Gains EMA Orphan Status for Rare Lung Disease 
LG Energy Solution Shares Slide After Ford Cancels EV Battery Supply Deal 
Elliott Management Takes $1 Billion Stake in Lululemon, Pushes for Leadership Change 
Apple Opens iPhone to Alternative App Stores in Japan Under New Competition Law 
Oracle Stock Surges After Hours on TikTok Deal Optimism and OpenAI Fundraising Buzz 
Amazon in Talks to Invest $10 Billion in OpenAI as AI Firm Eyes $1 Trillion IPO Valuation 
Blackstone Leads $400 Million Funding Round in Cyera at $9 Billion Valuation 
noyb Files GDPR Complaints Against TikTok, Grindr, and AppsFlyer Over Alleged Illegal Data Tracking. 
Volaris and Viva Agree to Merge, Creating Mexico’s Largest Low-Cost Airline Group 
OpenAI Explores Massive Funding Round at $750 Billion Valuation 
Shell M&A Chief Exits After BP Takeover Proposal Rejected 
MetaX IPO Soars as China’s AI Chip Stocks Ignite Investor Frenzy 
Nike Shares Slide as Margins Fall Again Amid China Slump and Costly Turnaround 
McDonald's unveiled a $5 value meal on June 25, featuring popular items like a McDouble burger or McChicken sandwich, aiming to attract more customers following a challenging quarter with lower-than-expected sales growth.
McDonald's New $5 Value Meal Aims to Boost Customer Visits Amidst Sluggish Sales Growth
According to Yahoo Finance, McDonald's (MCD) has recently released its highly anticipated value menu.
Golden Arches has introduced its $5 meal offer on Tuesday. This deal includes a four-piece chicken McNuggets, small fries, a small soft drink, and the option of a McDouble burger or McChicken sandwich.
In a press release, McDonald's USA president Joe Erlinger stated that the organization is "concentrated" on providing affordable alternatives to entice consumers to return to the restaurant. This follows a challenging first quarter, during which the company's US same-store sales increased by 2.5%, slightly lower than the anticipated 2.55% increase. Additionally, the company experienced missed revenue growth and same-store sales in all its segments and earnings.
Franchisees anticipate that this limited promotion will encourage consumers to frequent McDonald's restaurants more frequently. Nevertheless, they expect that margins will be impacted.
“Value promotions never increase margins — never,” one McDonald’s franchisee, who wished to remain anonymous, told Yahoo Finance. “They do drive guest counts. Hopefully, the increase in guest counts will offset the slimmed-down margins.”
Analyst Suggests McDonald's Value Meal May Boost Visits but Premium Item Sales Needed for Profit Growth
According to Andrew Charles, an analyst at TD Cowen, the value offering incentivizes consumers to return. However, he emphasized that the restaurant must promote the ordering of premium or supplementary items to "substantially enhance profitability."
McDonald's strategic move aims to dispel the notion that the fast-food chain is prohibitively expensive by demonstrating that it provides a suitable product at an appropriate price.
Erlinger published a blog in response to allegations that it had increased prices. The blog details the cost increases of the Big Mac and Quarter Pounder, among other items. Since 2019, the average prices of the two sandwiches have increased by approximately 20%.
In addition to McDonald's, other chains also participate in the value trend.
KFC (YUM) debuted a $4.99 meal in early April, including two chicken portions, a biscuit, and mashed potatoes and gravy. In late May, Burger King (QSR) reinstated its $5 Your Way Meal. This meal comprises a Chicken Jr., Whopper Jr., or Bacon Cheeseburger, fries, morsels, and a beverage.
Photo: Microsoft Bing
