Dive Brief:
- McDonald’s is planning to add several value offerings priced at $3 or less and $4 breakfast meals in April, according to a report from The Wall Street Journal, which cited people familiar with the discussions.
- McDonald’s declined to comment on the news.
- The chain reported a 6.8% increase in same-store sales during the fourth quarter, with its value menu and marketing initiatives helping to improve the chain’s baseline momentum.
Dive Insight:
McDonald’s has heavily focused on value since 2024 when consumer enthusiasm for the chain flagged over its perceived lack of affordability. At the time, CEO Chris Kempczinski said the chain was offering value in different ways at the local level, but didn’t have a clear national platform. That has changed.
McDonald’s 2025 launch of the McValue platform led to “immediate incrementality,” Kempczinski said during the chain’s February earnings call. Its Extra Value Meals, which debuted in September, have also performed well among low-income guests and helped improve value and affordability scores, he added.
“As awareness for these programs has grown, we've seen value and affordability scores steadily improve throughout the year, which also tell us they're resonating with customers,” he said. “McDonald's is not going to get beat on value and affordability. It's in our DNA, and we will remain agile to respond as appropriate to a dynamic competitive landscape.”
The new value offerings sound similar to the chain’s $1, $2, $3 Dollar Menu, which launched in 2018 and drove strong results. The new $3 or less menu will be price competitive against other QSR chains, like Taco Bell, which added a Luxe Value Menu earlier this year with 10 items at $3 or less. The Wall Street Journal said McDonald’s will include food like a sausage biscuit or a four-piece Chicken McNuggets in the $3-or-less platform, and that it will replace the chain’s current buy-one-add-one-for-a-dollar menu.
Significant discounting can impact franchisee bottom lines and profitability, but Kempczinski said in February that franchisees have largely been enthusiastic about the current state of the business. He reiterated that franchisees still set pricing. McDonald’s also supports its franchisees through revenue growth management, but the expectation is that franchisees continue to reflect McDonald’s value positioning.
In addition to value, the chain is also working on enhancing its overall menu quality. Earlier this month, McDonald’s added the Big Arch Burger, its largest burger yet with two quarter-pound patties, for a limited time in the U.S.
McDonald’s also has been rolling out its Best Burger platform, which was deployed in 85 markets as of February, and was on track to reach nearly all markets by the end of this year, Jill McDonald, executive vice president and global chief restaurant experience officer, said during the earnings call. The chain is also working on expanding its McCafe lineup in the U.S. and tested various drinks inspired by its CosMc’s concept in 500 restaurants in Q4.
