McDonald's (MCD, Financial) has announced a revamp of its U.S. value menu to draw back price-sensitive customers. The new McValue menu, set to launch in January, will feature a $5 meal deal and a "buy one, add $1 for another" mix-and-match promotion. This initiative aims to boost growth after recent sales declines, partly due to American consumers losing interest in higher-priced items.
The company had previously made progress, but an E. coli outbreak linked to onions on its Quarter Pounder burgers deterred many customers. McDonald's leadership, including CEO Chris Kempczinski, emphasized during an earnings call the company's commitment to offering affordable dining options, acknowledging the need to restore its reputation for value.
The new value strategy will replace the 2018 platform that offered items priced between $1 and $3. Inflation has made it difficult to maintain low-priced offerings, prompting the need for this menu overhaul.
As of the recent market close, McDonald's shares have decreased by 2.7% this year, while the S&P 500 index has risen nearly 25% during the same period.
