McDonald’s prepares ‘McValue’ offer for 2025
A McDonald’s is seen on October 23, 2024 in the Flatbush neighborhood in the Brooklyn borough of New York City.
Miguel M. Santiago | fake images
McDonald’s prepares value offers for 2025 with the aim of retaining customers fed up with high costs in restaurants.
The company is working on a new “McValue” approach for next year that involves keeping the $5 value meal deal it launched this summer on the menu for the first half of the year, as well as introducing a “buy one and add another” for $1. more, CNBC has learned. The “buy one add one” deal includes a double cheeseburger; chicken sandwich; 6 pieces of nuggets and fry; or breakfast options of Sausage McMuffin, sausage biscuit or sausage burrito and fries, according to a person familiar with the matter.
Local value deals have been on menus across the country and on the app lately, including 10-piece nuggets for $1, among other offerings, as part of a broader value strategy.
While carriers are still voting on the 2025 value offerings, the initiative is likely to pass, two people familiar with the matter said. McDonald’s declined to comment.
In its most recent quarter, McDonald’s reported earnings and revenue that beat expectations, but saw its global same-store sales fall 1.5%. Sales rose 0.3% in the US, slightly below analysts’ expectations.
On the earnings call, executives said they were working to solidify a 2025 value platform that will launch in the first quarter of the year.
“It is necessary, from the base, to have a solid value proposition. And that has been the focus for us in several of our markets, either strengthening, adding or adjusting our value programs so that we have that good base,” said the CEO Chris Kempczinski. he said on the call with analysts.
“Then you have to overlay that food news that can excite the customer, and you have to have great marketing behind it. And when you do that with news and great marketing, you can get solid control of the entire margin that goes along with some of those valuable programs,” he said.
But a recent E. coli outbreak linked to McDonald’s chopped onions hit traffic in October, executives said, which will enter the fourth-quarter earnings cycle.
The fast-food giant will invest more than $100 million to boost restaurant sales and accelerate the recovery of affected franchises, CNBC reported Friday.
Of that total, $65 million will be invested in supporting owners who have lost business, focusing on those in the most affected states. Approximately $35 million will be invested in traffic-generation programs, including marketing efforts, according to a memo to owners and employees seen by CNBC.