McDonald’s (MCD) is aiming for a fresh start in 2025 after facing challenges in 2024, including weak sales and an E. coli outbreak that impacted its stock performance. To recover, the fast-food giant is launching a new national value platform, McValue, designed to attract more customers and boost investor confidence.
The McValue platform features several affordable meal options, including a $5 meal deal that debuted in June 2024. While the deal initially led to a slight increase in foot traffic, the positive effects were short-lived, as the E. coli outbreak in October disrupted the momentum. In addition to the $5 meal, McDonald’s is offering a “buy one, get one for $1” promotion, along with regional deals and exclusive offers available through the company’s app.
Starting January 7, 2025, all U.S. McDonald’s locations will roll out the McValue menu. The launch, months in the making, was carefully planned, according to John Palmaccio, a McDonald’s owner and operator in South Carolina and Georgia, who is also the Chair of the Operator’s National Advertising Fund. Palmaccio emphasized the importance of getting the launch right, working closely with the company to analyze consumer preferences and assess the success of similar promotions.
“We took the time to get it right,” Palmaccio said. “We reviewed data on consumer preferences and deal performance to ensure McValue was a solid business case.”
In McDonald’s first-quarter earnings report for 2024, CEO Chris Kempczinski highlighted the need for a national value platform. While U.S. same-store sales grew by 2.5%, they fell short of the 2.55% expected by analysts. Kempczinski acknowledged that McDonald’s had been losing ground in the U.S. market, where competitors had already implemented value menus, which McDonald’s lacked.
Throughout 2024, McDonald’s U.S. sales were under pressure as consumers sought cheaper options in response to rising costs. In its most recent quarter, same-store sales in the U.S. grew by just 0.3%.
Wedbush analyst Nick Setyan believes the McValue menu may not significantly increase profits but could drive more transactions. He expects customers to either upgrade their meals, add extra items, or visit more often. Setyan suggests that even modest growth in same-store sales—such as 2%—would be considered a success in today’s competitive fast-food market.
Compared to previous value menu offerings, industry experts like Gargiulo see McValue as a more flexible and sustainable approach. Franchisees will have more control over pricing, particularly with the “buy one, get one for $1” offer, allowing for regional pricing differences.
“Franchisees will have the ability to set the price for the first item in the deal,” Gargiulo said. “This flexibility makes the McValue platform more sustainable than earlier concepts like the dollar menu, which was often unpopular with franchisees.”
Over time, McDonald’s may also adjust the core meal deal, modifying its contents or increasing the price point from $5. The McValue menu aims to help McDonald’s better compete in the value-driven fast-food market and attract more customers looking for affordable meal options.
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