Extra Value Combos meals are already the cheapest. But the most fragile consumers are even more fragile in the USA.
The meals Combos Extra Value began to appear in McDonald’s in September, in the USA. Or rather, they appeared, after a similar promotion in the early days of COVID-19.
By ordering this “package” together, this combined, customers save 15%, compared to individual orders for each product.
This cheapest meal costs 5 dollarsjust over 4 euros. And even in these, the McDonald’s announced that it is bearing part of the cost.
The restaurants in fast-food in the USA have registered a break significant of clients with lower income. Inflation makes a difference.
Therefore, and in a (rare) measure that exposes the fragility of consumers with financial difficulties, the company decided to temporarily subsidize prices that are already affordable.
The news reports that last Wednesday, McDonald’s executives informed investors that the company is sharing the cost of discounted Extra Value Combos with franchisees in the US until the beginning of 2026, so that the agreements are financially viable.
Chief Financial Officer Ian Borden explained that McDonald’s is covering around half discount on the menu price.
The company spent around 15 million dollars (almost 13 million euros) in September alone; expect to spend around 75 million of dollars (65 million euros) in the fourth quarter to finance meal promotions at 5 and 8 dollars.
Almost all franchisees agreed with the news. It is a short-term “bridge” to smooth out a difficult consumer environment.
And experts believe that this strategy will work for McDonald’s, a company that should gain market share thanks to its focus on affordable everyday prices. In the last quarter, the company’s sales rose 2.4% in the USA.
In short: McDonald’s isn’t just selling $5 meals — it’s helping finance them, Axios concludes.
