McDonald's Unveils 'McValue' Program for 2025 to Counter Declining Sales

Key Highlights

McDonald's introduces a value-focused "McValue" platform to address shifting customer spending habits.

The program includes the popular $5 value meal and a new "Buy One, Add One for $1" offer.

The initiative comes as inflation pressures have led to reduced fast-food spending, particularly among lower-income consumers.

McDonald's (MCD) announced on Friday its latest strategy to reinvigorate sales with the launch of the "McValue" program, set to debut in the U.S. on January 7, 2025. The fast-food giant is banking on a series of value-oriented deals to retain price-sensitive customers amid rising costs.

Core Offerings: $5 Value Meal and 'Buy One, Add One for $1'

The McValue program builds on the $5 value meal promotion that debuted earlier this year and was extended after franchisees reported positive sales results.

In addition, McDonald's will introduce a "Buy One, Add One for $1" deal, allowing customers to purchase items like sausage McMuffins or double cheeseburgers at full price and add another item from the same list for just $1.

McDonald's will also roll out region-specific offers and exclusive app-based deals, including discounts on chicken McNuggets and complimentary fries, aiming to provide more personalized value to its customers.

Customer-Centric Approach to Value

"We recognize that value means different things to different people," said McDonald's USA President Joe Erlinger. "By working closely with our franchisees, we’ve developed a flexible platform that lets customers define value on their own terms."

The company acknowledged that prolonged inflation has impacted lower-income customers, many of whom have pulled back on fast-food spending. McDonald's noted that the $5 value meal, introduced over the summer, has been a bright spot in its sales strategy and signaled its commitment to prioritizing affordability moving forward.

Recovery Efforts After E. Coli Outbreak

The McValue announcement follows a challenging period for McDonald's. Last month, an E. coli outbreak linked to onions used in Quarter Pounders disrupted sales at several locations. CNBC reported that McDonald's is investing $100 million to support affected stores and bolster recovery efforts.

Market Reaction

Despite the new initiative, McDonald's stock remained relatively flat on Friday, trading at $288.70—approximately 3% below its value at the start of the year.

With the McValue program, McDonald's aims to regain momentum in the fast-food market by delivering affordable options that resonate with price-conscious customers in a challenging economic environment.