The burger chain is overhauling its menu and seeking to deliver a ‘clear and compelling value proposition’ The fast-food industry’s ongoing discount battle got an extra dose of drama on Wednesday as McDonald’s said it planned to roll out new value meals next year. Chris Kempczinski, the burger chain’s CEO, said on the company’s earnings call that it had begun an eight-week test of two value menu formats last week in roughly 1,900 restaurants across a handful of regions in the U.S. He said the chain was testing mix-and-match combos and “fixed” bundles, or set combinations of items.
He said the results from those tests will determine that menu that customers like the most and that fits best with restaurant operations. The company hopes to bring the new program nationwide in early 2027. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it.
I would like to receive updates and special offers from Dow Jones and affiliates. I can unsubscribe at any time. McDonald’s detailed the plans as it works to overhaul its menu, declutter its value offerings and hold on to customers who are juggling higher costs of living and have shied away from dining out.
According to Numerator, U.S. visits to McDonald’s declined 6.2% in the third quarter. McDonald’s U.S. same-store sales during that period slipped 0.2%. However, Kempczinski on Wednesday said he was “encouraged by our baseline traffic trends in September and October.” And he said that U.S. same-store sales turned positive in September, following a dip in July and August.
Efforts to win over new and lapsed loyalty members with digital offers — such as a $2 breakfast sandwich, and free fries with a $1 minimum purchase — helped attract more customers. Investors cheered the news. Shares of McDonald’s were up 6.4% on Wednesday, and the stock was on pace for its biggest percentage gain since April 6, 2020, when it rose 10.42%.
However, shares are down 9.1% so far this year. The stock was trading at around $279, off highs of more than $340 reached earlier this year. Management in August said changes to its McValue discount menu, combined with an array of different promotions, led to questions from consumers and complications for staff.
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