(Bloomberg) -- McDonald’s Corp. summer of deals is turning into a fall affair.
The chain will extend a $5 meal deal that debuted in June into December in most US markets, according to a statement Thursday.
The move points to how much fast-food chains are competing for budget-conscious guests. McDonald’s has also been looking to challenge the perception that its prices had gotten too high after some competitors introduced value meals months before it did.
“We’re committed to keeping our prices as affordable as possible,” Joe Erlinger, president of McDonald’s USA, said in the statement.
About 70% of buyers polled by research firm Numerator said the meal deal contributed to their choice to visit McDonald’s. Almost all who purchased the $5 bundle said they’d buy it again, the survey found. The deal includes a McChicken or McDouble, four chicken nuggets, small fries and a drink.
McDonald’s is also releasing app-exclusive promotions, including a fried chicken sandwich for $2, to boost use of its loyalty program. Members visit more frequently and get more add-ons, like fries.
The Chicago-based company is eyeing a “broader” reset of its value offerings, Chief Executive Officer Chris Kempczinski has said, as the number of $1, $2 and $3 menu offerings has shrunk in recent years amid rising operating and food costs.
Before launching the $5 meal deal, the burger chain had been offering discounts on its mobile app, but it had held off on a broader value campaign as it performed better than peers coming out of the pandemic. Results have weakened since, with sales falling last quarter.
The company’s shares suffered, too, but have rebounded over the past two months.
At the end of July, McDonald’s told franchisees that the company had recorded an “incremental lift” of nearly 3% in guest counts since the $5 meal deal began in late June.
(Adds detail on the bundle’s performance in fifth paragraph.)
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