McDonald's Acknowledges Economic Struggles, Plans to Bring Back $5 Meal Deal

Across Generations, Many Can't Afford a Big Mac

From Gen-Z to millennials and baby boomers, many people are finding it increasingly difficult to afford a Big Mac combo meal at McDonald's. This is due to three years of 'McFlation,' which has seen the price of some combo meals rise to as much as $18.

Fast Food: Cheap and Quick, But Not Anymore

Fast-food burgers have always been popular due to their affordability and convenience, despite their negative health impacts. However, three and a half years of economic policies under President Biden, along with inflation, have caused prices to soar. Even McDonald's acknowledged this in its recent earnings report.

Return of the $5 Combo Meal Deal?

According to Bloomberg, McDonald's may be considering reintroducing $5 combo meal deals. This could include a McChicken or a McDouble, fries, and a drink. The potential new offering comes as Goldman analysts warn that low-income consumers are struggling and reducing their spending due to increasing stagflation threats.

McDonald's Earnings Report: An Ominous Sign

Bonnie Herzog, a Goldman analyst, expressed concern over McDonald's earnings report, suggesting it indicates a struggling economy. McDonald's CEO Chris Kempczinski stated during an earnings call that he is "laser-focused" on restoring affordability for low-income consumers.

How the Meal Deal Might Work

As per Bloomberg's source, McDonald's franchisees, who run about 95% of US stores, contribute to an advertising fund and have input on major marketing campaigns. However, an earlier attempt to get franchisees to support the $5 meal deal failed. Concerns were raised about potential losses, especially in states like California where minimum wage for fast-food workers has increased by 25% to $20 an hour. To mitigate potential losses, McDonald's has secured funding from Coca-Cola Co.

McDonald's $5 Meal Deal: A Response to Economic Struggles

The reintroduction of McDonald's $5 meal deal appears to be a direct response to the economic struggles faced by many low-income consumers under current economic policies. These struggles have led to increased credit card debt and depleted personal savings.

What do you think about McDonald's reintroduction of the $5 meal deal? Is it a necessary response to the current economic climate? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, every day at 6pm.