McDonald’s (MCD) is once again leaning on its value playbook. The fast-food chain announced that it will reintroduce its Extra Value Meals starting September 8. The company noted that the deals are meant to make meals more affordable while traffic at many chains remains soft. The aim here is clear, as McDonald’s wants to solidify its position among low-income families. In the meantime, MCD shares are up 9.40% year-to-date.
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Value Meals Return
The Extra Value Meals will cover eight options across the menu. They include the Sausage McMuffin with Egg, Sausage Egg and Cheese McGriddle, Egg McMuffin, Bacon Egg and Cheese Biscuit, Big Mac, 10-piece Chicken McNuggets, any Quarter Pounder burger, and any McCrispy Sandwich. McDonald’s said the meals save customers about 15% compared with ordering items one by one.
To mark the return, the chain will also feature two limited offers. For breakfast, buyers can get a $5 Sausage McMuffin with Egg meal, which comes with hash browns and a small coffee. For lunch or dinner, they can choose an $8 Big Mac meal that includes medium fries and a medium soft drink.
Focus on Affordability
McDonald’s has been using discounts for more than a year to draw diners back. Last summer the chain rolled out a $5 meal and later added a buy one get one for $1 deal. The company will also follow up in November with more promotions, including a $5 Sausage Egg and Cheese McGriddles meal and a $8 Chicken McNuggets meal.
During the latest earnings call in early August, Chief Executive Chris Kempczinski emphasized that low-income buyers remain crucial for traffic, while President Joe Erlinger added that McDonald’s teams and franchisees are focused on making meals more affordable.
Is McDonald’s Stock a Buy, Sell, or Hold?
The outlook on McDonald’s among the Street’s analysts is fairly positive with a Moderate Buy consensus rating. The average MCD stock price target stands at $338.42, implying a 7.94% upside from the current price.
