McDonald’s launches a $5 Meal Deal as inflation-weary consumers ditch fast-food

McDonald’s is set to introduce a $5 Meal Deal in an attempt to lure customers back to stores amid an inflation-driven, cost-of-living crisis.

The fast-food giant’s global sales have slowed over the past year, according to Bloomberg.

The meal may include a McChicken or a McDouble along with fries and a drink, a source told Bloomberg. The Coca-Cola Company has also offered to put up funding to help roll out the deal.

More Americans are opting to eat at home due to high rates of inflation which has directly affected the price of fast-food. A standard McDonald’s Quarter Pounder with cheese meal now costs an estimated $11.99 - up from $5.39 a decade ago, according to personal finance site FinanceBuzz.

McDonald’s CEO Chris Kempczinski said that the company had to be “laser-focussed on affordability”, on a recent earnings call.

"I think it’s important to recognize that all income cohorts are seeking value," Mr Kempczinski said. “What we don’t have in the US right now is a national value platform.”

McDonald’s shares rose 2.7 per cent on Friday following the $5 Meal Deal news, its highest daily increase since January 2023. Rivals Wendy’s and Burger King saw share prices slide in comparison.

However, the company looks likely to face significant problems convincing US franchise owners to rollout the offer. Earlier this year, 95 per cent of franchisees rejected the $5 Meal Deal due to concern over further loss of earnings.

This was particularly an issue for McDonald’s branches in California where a new law means that fast-food workers must be paid at least $20 an hour.

After that law took effect in April, fast-food outlets across the state have hiked prices.

The Independent has contacted McDonald’s for comment on the reports of the $5 meal-deal.