McDonald’s to add new value bundles next year

McDonald's intends to unveil new budget-friendly meal options early next year following a lackluster third quarter marked by reduced foot traffic in U.S. outlets. The company's Chairman and CEO, Chris Kempczinski, announced on a recent investor conference call that an eight-week trial of combination and price-fixed bundles at 1,900 U.S. restaurants has commenced.

Sample bundles could include a McChicken sandwich and a small fry for just $3.50. However, around 4,000 franchisees are proceeding independently, having rolled out their own value meal bundles. Kempczinski emphasized that customers should perceive a distinct and attractive value proposition with every encounter with McDonald's, whether they seek an inexpensive single item, a full meal, or a digital offer through the mobile app.

The company's U.S. same-store sales, which encompass locations open at least a year, declined 0.2% in the July-September period. This decline, though less severe than the 0.5% drop Wall Street anticipated, marked the first decline for McDonald's since early 2025. In response, McDonald's has reintroduced certain regional and national digital promotions and reoriented advertising expenditures to bolster value meals, contributing to a positive same-store sales trend in September and October.

Nonetheless, the shift in strategy underscores the formidable economic headwinds facing U.S. fast food chains, as customers increasingly grapple with rising fuel costs and persistently high living expenses. Fast food sector foot traffic in the U.S. dipped 2.6% across the board during the third quarter, according to Revenue Management Solutions, a restaurant sector analyst.

McDonald's has been refining its U.S. value offerings for over two years in an effort to re-engage lower-income consumers and intensify competition with rivals such as Taco Bell, which provides a menu of ten items priced at $3 or less or less. In June 2024, McDonald's introduced a $5 Meal Deal. The following year, the company launched its McValue menu and Extra Value Meals, which offer a 15% discount when purchasing bundled meals compared to buying individual items.

In April, the company revamped the McValue menu, incorporating ten additional $3 or less items. However, not all McDonald's franchisees - who manage 95% of the corporation's U.S. restaurants - have embraced the revamped McValue menu. In August, Kempczinski stated that only 60% of U.S. restaurants were offering the updated menu. McDonald's replaced its U.S. president that same month.

Despite these challenges, same-store sales globally increased 1.3% in the third quarter, buoyed by strong performances in Germany and Australia that offset weakness in France, where protests erupted in September. The company's revenue grew by 1% to $7.16 billion for the quarter, falling short of Wall Street's expectations of $7.28 billion.

Net income climbed 9% to $2.49 billion, surpassing analyst predictions of a $3.38 per-share profit. As a result, McDonald's shares experienced a more than 5% increase in morning trading on Wednesday.