A McDonald's restaurant in the Flatbush neighborhood of Brooklyn, New York City, on October 23, 2024.
Michael M. Santiago | Getty Images
McDonald's It is preparing value propositions for 2025 in a bid to hold on to customers who are tired of high costs at restaurants.
The company is working on a new “McValue” approach for next year that includes keeping the $5 meal offer it launched this summer on the menu for the first half of the year, along with offering a “buy one, add one” option for $1. More, CNBC has learned. The “buy one, add one” offer includes a double cheeseburger; McChicken sandwich; 6 pieces of chicken nuggets and small French fries; Or breakfast options of a Sausage McMuffin, a sausage biscuit, a sausage burrito and a hash brown, according to a person familiar with the matter.
Local value offerings have been on menus across the country and on the app recently, including 10 nuggets for $1, among other deals, as part of a broader value strategy.
While operators are still voting on value propositions for 2025, the initiative appears likely to pass, two people familiar with the matter said.
In a statement to CNBC, McDonald's said: “We and our franchisees have heard customers loud and clear when it comes to keeping prices as affordable as possible. From the popular $5 meal deal, to the many local and in-app offers on food that… They deliver. Love – We've been delivering great value this summer and fall, giving fans more ways to save when they visit McDonald's, and as we look forward to 2025, we're cooking up something even bigger that we can't wait to share He's new to the store.”
Last quarter, McDonald's reported earnings and revenue that beat expectations, but saw its global same-store sales decline 1.5%. Sales rose 0.3% in the United States, slightly weaker than analysts expected.
On the earnings call, executives said they are solidifying their 2025 value platform for launch in the first quarter of the year.
“You need, basically, to have a strong value proposition. That's been our focus in a number of our markets, either enhancing, adding or modifying our value programs so that we have that good foundation,” CEO Chris Kempczinski said on a call. With analysts.
“You then need to overlay food news that can interest the customer, and you have to have great marketing behind it. And when you do that with news and great marketing, you can get a strong full margin check that goes along with some of these valuable programs,” he said.
But a recent E. coli outbreak linked to McDonald's onion slices led to a decline in traffic in October, executives said, which will fall into the fourth-quarter earnings cycle.
The fast food giant will invest more than $100 million to boost restaurant sales and speed up the recovery process for affected franchisees, CNBC reported on Friday.
Of this total, $65 million will be invested in supporting owners who have lost their businesses, targeting those in the most affected states. Nearly $35 million will be invested in traffic drive programs, including marketing efforts, according to a memo to owners and employees seen by CNBC.
