McDonald’s summer menu deals: Here’s what the burger chain has in store as fast-food prices rise

McDonald’s has announced a new limited-time $5 value meal, set to launch next week, as part of its strategy to attract cost-conscious customers amid rising inflation—and balance criticism of overpricing.

Despite the price of medium fries increasing by 44% over five years, the company is striving to change public perception regarding the cost of its menu items.

In addition to the value meal promotion, the company continues “Free Fries Friday” in the McDonald’s App, offering a free medium fry with a $1 minimum purchase until year-end.

And on Saturday, July 13, in honor of National French Fry Day, McDonald’s App users can get free fries of any size.

In a recent blog post, Joe Erlinger, president of McDonald’s USA, addressed and debunked some of the more dramatic examples of cost hikes circulating on social media, calling them “poorly sourced” and “inaccurate.”

However, in announcing the new limited promotion on Thursday, Erlinger said, “We heard our fans loud and clear—they’re looking for even more great value from us, and this summer that’s exactly what they’ll get.”

McDonald’s said on Thursday that local franchisees are also offering deals, such Buy One Get One for $1 breakfast sandwiches in Memphis, Tennessee, and savings on lunch and dinner offerings, such as a Double Cheeseburger and small fries for $3.50.

Why is fast food so expensive lately?

The launch of promotions such as this comes at a time when fast-food chains, including McDonald’s, are facing slower growth in foot traffic and rising costs. The average cost of a Big Mac has increased by 21% since 2019, now priced at $5.29. Similarly, a Quarter Pounder with cheese has risen 20%, now costing $5.39.

Rising labor and food costs are cited as main factors driving these price increases. Many states have raised their minimum wages, with some, like California, mandating substantial increases to $20 per hour for larger chain restaurants.

In the first quarter of the year, McDonald’s reported a global same-store sales increase of 1.9%, slightly below the expected 2.1% as forecasted by analysts. The company had anticipated a slowdown from the rapid growth seen post-pandemic, citing increased consumer preference for eating at home due to lower grocery prices.

A ‘luxury’ item?

A January poll by Revenue Management Solutions revealed that about 25% of individuals earning under $50,000 are reducing their fast-food consumption due to cost concerns.

Moreover, a recent LendingTree survey indicated that 78% of consumers now view fast food as a luxury item, highlighting the impact of inflation on dining habits.

Despite efforts to combat the perception of inflated prices, McDonald’s acknowledges the reality of rising costs. “Americans across the country are making tough calls about where to spend their hard-earned money,” Erlinger noted in his blog post.

McDonald’s stock was up almost 2% Friday in late morning trading.