McValue menu will appear at McDonald’s in early January 2025

McValue menu will appear at McDonald’s in early January 2025

Jordan Valinsky CNN

NEW YORK McDonald’s hopes to win back customers put off by higher prices with a new value menu.

On Friday, the fast-food chain unveiled the “McValue” menu, a new value-priced category that will launch in U.S. restaurants on Jan. 7. The popular $5 meal deal, introduced earlier this year, will be the centerpiece. The menu also features a new “buy one, add one for $1” option, which includes breakfast.

McDonald’s is trying to revive growth after a few dismal quarters. According to the company, the chain’s perception of value among its cash-conscious customers has weakened as the average price of its menu items has risen about 40% over the past five years in line with rising costs.

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“When it comes to value, we know there is no one-size-fits-all solution. We have worked closely with our franchisees to create a new platform that allows our customers to define value on their own terms,” Joe Erlinger, president of McDonald’s USA, said in a statement.

The chain had made some progress before an E. coli outbreak in October led to a drop in sales and traffic. McDonald’s announced last week that it is investing $100 million in marketing and support for franchises hit hardest by the health crisis.

McValue’s menu also includes other in-app offerings as well as local food and drink offerings organized by franchisees.

The nationwide rollout of McValue helps “enhance McDonald’s broader image as a value-driven brand,” said David Henkes, senior director at Technomic, a food industry research and consulting firm.

“Restaurant traffic continues to be challenging, and this really reflects the belief that value will continue to be important to the consumer for the foreseeable future,” he told CNN. “Inflation remains high, and creating a more structured, long-term value platform shows me that McDonald’s sees real opportunity in increasing its focus on price-conscious consumers.”

The new menu category is McDonald’s biggest value-based initiative since 2018, when prices ranged from $1 to $3 for some items.

But the dollar menu proved relatively unpopular compared to the far more successful $5 menu that debuted this summer. Customers weren’t necessarily buying cheap food, but rather good value for money.

Ultimately, inflation has all but wiped out items at the lower end of this price point. The McValue menu replaces the rest.

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