Topline
McDonald’s will soon launch discounted menu items and cheaper breakfast deals, according to the Wall Street Journal, making the push for value as fast food chains around the country try to maintain lower-income customers hit by inflation and priced out of dining options that are typically budget friendly.
McDonald’s will launch the new deals next month. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
Key facts
McDonald’s will introduce items that cost $3 or less, the Journal reported, citing unnamed people familiar with the discussions around the deals.
The push for increased value will also include $4 breakfast meal deals, according to the Journal, which said the new items will launch in April and noted McDonald’s morning offerings have seen the largest drop from lower-income customers.
The $4 meal deal will include options such as a McMuffin, hash brown and a coffee, while the $3 and less menu will include sausage biscuits or four-piece chicken McNuggets, replacing the buy-one-add-one-for-a-dollar menu.
The move comes months after McDonald’s relaunched Extra Value Meals in September that offered a $5 Sausage McMuffin with Egg meal that came with Hash Browns and a small coffee, as well as an $8 Big Mac meal that included medium fries and a medium drink.
Big number
$7 billion. That is how much revenue McDonald’s generated in its latest quarter while U.S. same-store sales increased 6.8%. The fast food chain did not disclose how much the reintroduction of Extra Value Meals impacted its earnings, though it is possible the offerings found success as McDonald’s looks to incorporate more savings options for diners.
Fast food chains see less lower-income customers
McDonald’s is one of several chains that has seen a drop off of lower-income diners in recent quarters. Last year, Chipotle CEO Scott Boatwright said households making less than $100,000, which make up about 40% of Chipotle’s total sales, were not dining out as often, with the demographic of 25 to 35 year olds seeing the biggest slump. Similar to McDonald’s, Wendy’s recorded drops in breakfast sales last year, with CEO Ken Cook telling investors, “When consumer uncertainty increases and consumers choose to eat another meal at home, breakfast is often the first place that they do that with.”
Promoted
Key background
McDonald’s recorded a 3.6% decline in U.S. same-store sales in the first quarter of 2025, which was partially driven by a 10% decrease in visits from low- and middle-income households. The chain’s average cost for a menu item jumped 40% from 2019 to 2024, which McDonald’s has said aligns with meeting higher wages, cost increases and pricier foods. CEO Christopher Kempczinski told investors in McDonald’s third quarter earnings call that traffic from lower-income diners dropped “nearly double digits” industry-wide, noting higher grocery and apparel prices “affecting their outlook and their sentiment and their spending behavior.” However, the chain is scoring some wins despite the challenge, as Kempczinski said McDonald’s logged a 5.5% jump in sales growth in the fourth quarter, contributing to $140 billion in systemwide sales in 2025.
=== Forbes ===
