July 22, 2024 – 7:20 AM PDT
(Reuters) – Burger chain McDonald’s (MCD.N) $5 value meal offer will be extended to August at most U.S. locations after about 93% of its restaurants voted in favor of the plan, according to a memo seen by Reuters.
McDonald’s kicked off the meal offer on June 25 for an initial four-week period to compete with similar promotions offered by large fast-food chains to attract cash-strapped customers.
Some McDonald’s restaurants have voted in favour of extending the offer through August, while others are yet to vote, which could mean different offer periods for different geographies, according to the memo.
The $5 meal has helped bring back traffic into McDonald’s restaurants, the memo noted, after higher fast-food prices had driven budget-conscious customers to limit eating out and switch to cheaper home-cooked meals.
The company reported a first-quarter profit miss in April and noted that consumers across income groups were seeking value.
Rival Burger King, owned by Restaurant Brands International (QSR.TO), was running a $5 “Your Way deal” last month, while Wendy’s (WEN.O) announced a $3 breakfast meal deal in May.
Bloomberg first reported the news of McDonald’s extending its $5 meal deal earlier on Monday.
Reporting by Savyata Mishra in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguli