The bulk of McDonald’s Corp. US restaurants will extend the burger chain’s $5 meal deal in a bid to attract budget-strapped diners.
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.
The company’s shares were little changed as of 9:47 a.m. in New York trading. Its shares have fallen about 13% this year.
McDonald’s is looking to bolster its “affordability plans through the rest of year,” according to the memo, including the potential to extend the current meal deal for an even longer period. It is also looking at extended hours of operation to capture demand during off-peak hours.
The burger chain is looking to lure in US consumers who have limited their spending as disposable incomes shrink. Many have cut back following the chain’s price increases over the past few years.
McDonald’s is scheduled to report second-quarter earnings on July 29.