McDonald’s (MCD) has decided to extend its $5 value meal promotion beyond its initial four-week run due to robust demand, according to reports.
Initially launched on June 25, the promotion, which includes a sandwich, drink, french fries, and chicken nuggets, was set to conclude after four weeks. However, Bloomberg reported that an internal memo revealed 93% of McDonald’s locations have agreed to continue the deal into August.
The memo, authored by Chief Marketing Officer Tariq Hassan and National Field President Myra Doria, highlighted that the promotion is successfully attracting customers back to McDonald’s restaurants. “The early performance of the promotion is meeting the objective of driving guests back to our restaurants,” the memo stated.
While McDonald’s shares recently saw a modest increase of about 0.5%, they are still trailing behind the broader S&P 500 index. This extension comes as numerous fast-food chains, including McDonald’s, offer deals to alleviate the impact of inflation on customers. The industry has been challenged by high inflation, which has reduced discretionary spending and affected sales.
Additionally, the memo noted that when customers purchase the $5 value meals at McDonald’s, they are less likely to visit competitors, as reported by CNBC.
McDonald’s shares have declined by over 12% this year. The company did not immediately respond to Investopedia’s request for comment.
