McDonald’s (MCD) is expanding its value menu yet again, this time adding items that cost less than $3, in an effort to win over cash-strapped consumers.
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This is the latest attempt by the Golden Arches to attract customers with low-priced items. The Chicago-based quick service restaurant chain has spent the last two years tweaking its value menu and responding to complaints that its prices rose too high during the Covid-19 pandemic.
McDonald’s says it now has a new strategy when it comes to its value menu: keep it simple. The newest change to the budget-focused McValue menu features 10 items that each cost under $3. Those items will go on sale starting April 21 of this year.
McDonald’s Low-Cost Approach
The breakfast items that cost less than $3 each include hash browns or a Sausage McMuffin. A small order of fries or a McDouble burger are among the cheapest items for sale during the rest of the day. At the same time, McDonald’s says it is shifting to simpler messaging about its value menu.
McDonald’s isn’t alone in lowering costs. Many of its rivals are doing the same. In January, Taco Bell launched a “Luxe Value Menu,” which also features 10 items that cost $3 or less. Wendy’s (WEN) revamped its Biggie Deals value menu earlier this year. It now features items that cost $4 to $6 each.
Is MCD Stock a Buy?
McDonald’s stock has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 15 Buy and 10 Hold recommendations assigned in the last three months. The average MCD price target of $349.48 implies 13.79% upside from current levels.
