Cash-Strapped Consumers Flock To McDonald’s On $5 Meal Deal

Let’s begin with our note from early May titled “McDonald’s Admits Consumers Are Broke With Planned Reintroduction Of $5 Meal Deal.”

Four weeks after the meal deal began at most McDonald’s locations across the US, an internal memo obtained by Bloomberg reveals that it will be extended due to an overwhelmingly positive response.

About 93% of McDonald’s locations have committed to selling the bundle past the initial four-week window that started June 25, according to a memo seen by Bloomberg News. The timetables will vary across the country, with some locations planning to make it available through August.

Early performance indicates the meal deal “is meeting the objective of driving guests back to our restaurants,” McDonald’s said in a message signed by Tariq Hassan, chief marketing officer, and Myra Doria, national field president. “Driving guest counts ultimately propels our business and is the key to sustained growth,” they added. -Bloomberg

In other words, McDonald’s abrupt shift to debut a meal deal about one month ago directly responded to cash-strapped consumers pressured by elevated inflation and high interest rates.