McDonald's is putting more emphasis on lower-priced meals and promotions after financially stretched U.S. customers pulled back on dining out.
According to a Reuters report, the chain said its U.S. sales have started to improve as it promotes extra-value meals and offers including a $2 breakfast sandwich and free fries with a $1 minimum purchase.
That doesn't mean McDonald's is cutting prices across its entire menu. Instead, the company is using targeted deals to bring back diners who have turned to cheaper competitors, convenience stores or meals at home.
What McDonald's value push means for customers
Customers looking to spend less at McDonald's may find more value-focused offers, but how consistently those deals are available may depend on cooperation between the company and its franchisees.
Reuters reported that about one-third of franchisees didn't take part in an under-$3 menu, which McDonald's executives said limited its execution.
"How deep and how lasting those meal deals are will depend on whether McDonald’s or its franchisees are willing to carry the cost," eToro market analyst Nagham Hassan said.
"If McDonald's leaves the cost to franchisees, expect the deals to be patchy and the recovery slow."
Why McDonald's is focusing on cheaper deals
McDonald's is trying to bring back customers who have cut back on dining out as living costs rise. Restaurant traffic improved recently with the return of the Monopoly promotion and Halloween-themed Boo Buckets but remained below year-ago levels, Reuters reported.
"We're taking the right steps to improve our near-term performance in the U.S., and I'm encouraged by our baseline traffic trends in September and October," CEO Chris Kempczinski told Reuters.
McDonald's is also pursuing its "NEXT" turnaround strategy, announced in June. The plan calls for simpler operations, updated restaurant designs and more employee training to improve efficiency. The company has not publicly confirmed whether the move would impact menu prices.
What could shape prices and deals next
McDonald's aims to expand Archie, its AI assistant for drive-thru ordering, to most U.S. restaurants by the end of 2027. Reuters did not specify what the expansion could mean for customers.
Separately, AI is at the center of a legal dispute involving menu prices. McDonald's enlisted law firm White & Case to defend it against a lawsuit alleging the company uses AI-powered tools to fix prices. Reuters previously reported that McDonald's uses machine-learning algorithms to calculate what the company calls the "optimal price" for each menu item at each restaurant.
For customers, the more immediate question is how widely franchisees participate as McDonald's tries to keep its value deals broadly available.
This story was created with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more.
This article originally appeared on USA TODAY: McDonald's pushes cheaper meals as customers cut back
