McDonald's revives Extra Value Meals as it tries to woo budget-conscious diners
McDonald's is moving to make its cheap eats even cheaper as the world's largest fast-food chain tries lure back budget-conscious customers.
The company announced on Tuesday that it is bringing back "Extra Value Meals" starting Sept. 8, including a limited $5 sausage and egg McMuffin meal and an $8 Big Mac meal.
Other items on the Extra Value Menu include:
- Sausage Egg and Cheese McGriddles
- Egg McMuffin
- Bacon, Egg and Cheese Biscuit
- 10-piece Chicken McNuggets
- Any variety Quarter Pounder burger
- Any variety McCrispy Sandwich
McDonald's focus on value comes as some customers, worn down by years of elevated inflation, have pulled back on their spending for food outside the home and amid heightened economic uncertainty.
On a company earnings call in May, CEO Chris Kempczinski said traffic among low-income customers was down "nearly double digits." McDonald's has also seen sluggish breakfast sales, which Kempczinski has attributed to the financial pressures facing low-income consumers.
In January, McDonald's introduced the McValue menu, which includes the $5 meal deal, along with a "buy one, add one for $1" deal. Earlier this summer, the company also said it would bring back the Snack Wrap, a white-flour tortilla filled with chicken, shredded lettuce and cheese. The item, now available for $2.99, returned to the McDonald's menu in July after a nine-year hiatus.
Other companies are also feeling the sting of reduced consumer spending. Constellation Brands, which markets beer brands Corona and Modelo in the U.S., on Tuesday cited falling demand in trimming its profit outlook for the year.
Constellation said in April that Hispanic customers in particular were reducing their beer consumption because of concerns about higher food costs, immigration and the job market.
"That has tended to mean that the consumer has pulled back on spending on a number of categories," CEO Bill Newlands said during a conference call with investors on Tuesday. "Beer is quite a ways down the list, but it's certainly on the list because things like social gatherings, an area where the Hispanic consumer often consumes beer, are declining today as part of these overarching concerns that they have."