McDonald’s (MCD) Again Lowers Prices as It Tries to Win Back Cash-Strapped Consumers

Quick-service restaurant chain McDonald’s (MCD) is again lowering prices on its Value Menu as it tries to win back cash-strapped consumers.

The Chicago-based company says it has revamped its Value Menu to now offer individual items priced at less than $3 and meal bundles for as low as $4. The latest price cuts come as Americans struggle with headwinds that include rising gas prices and food costs.

McDonald’s is trying to woo lower-income consumers who were turned off by its rising prices coming out of the Covid-19 pandemic. Management at the world’s largest fast-food company have said they are trying to rebuild the company’s reputation as the cheapest and most reliable option in the marketplace.

McDonald’s Affordability Strategy

The new Value Menu spans breakfast to evening meal options. Breakfast options include the sausage McMuffin, sausage biscuit, sausage burrito, hash browns, and a medium coffee, each for less than $3 each. For lunch and dinner, customers can choose the McChicken sandwich, McDouble burger, four-piece chicken McNuggets, small fries, and a medium soft drink, also for under $3 apiece.

For the $4 breakfast bundle, customers can choose a sausage McMuffin or sausage biscuit, served with hash browns and a small coffee. McDonald’s will also continue to offer its McChicken meal deal for $5 and McDouble meal deal for $6, each comes with four-piece McNuggets, small fries and a soft drink.

McDonald’s has launched several new versions of its Value Menu since last year, and some price-sensitive customers have started to return, says the company.

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.