MCDONALD'S plans to introduce new value-oriented meal bundles early next year after a disappointing third quarter that saw lower traffic at US restaurants.
McDonald's Chairman and CEO Chris Kempczinski said on Wednesday that the company recently began an eight-week test of mix-and-match and fixed-price bundles at 1,900 US restaurants. Those bundles might feature a McChicken sandwich and small fries for $3.50, for example.
But around 4,000 franchisees have decided not to wait for the test results and have launched meal bundles of their own, he said.
"Customers should see a clear and compelling value proposition every time they consider McDonald's, whether they're looking for an affordable individual item, a complete meal or a digital offer in the mobile app," Kempczinski said during a conference call with investors.
US same-store sales — or sales at locations open at least a year — fell 0.2 percent in the July-September period, the Chicago burger giant said on Wednesday. While that was not as bad as the 0.5 percent drop Wall Street had expected, it was the first retreat for McDonald's since early 2025.
McDonald's restored some regional and national in-app deals and shifted some marketing spending to support value meals, which helped push same-store sales into positive territory in September and October. But the shift in focus at McDonald's shows how challenging the economic environment has become for US fast food companies, which are losing customers as many Americans struggle with higher gas prices and the uncomfortably high cost of living.
Third-quarter foot traffic fell 2.6 percent across the entire fast food sector in the US, according to Revenue Management Solutions, a restaurant industry consultant.
McDonald's has been tweaking its US value offerings for more than two years to try to lure back lower-income customers and better compete with rivals like Taco Bell, which offers a menu of 10 items that each cost $3 or less.
In June 2024, McDonald's introduced a $5 Meal Deal. The next year, it debuted its McValue menu and Extra Value Meals, which promise a 15-percent discount for a bundled meal compared to buying items individually. In April, it revamped the McValue menu, adding 10 items that cost $3 or less.
But not all of McDonald's franchisees — who own 95 percent of the company's US restaurants — have been on board. Kempczinski said in August that only 60% of its US restaurants were offering the revamped McValue menu. McDonald's replaced its US president that same month.
Kempczinski said the company's previous efforts haven't been enough because they didn't offer compelling low-end deals.
"You need to have good entry-level value, particularly with the low-income consumer," he said.
Globally, same-store sales rose 1.3 percent in the third quarter. Strong sales in Germany and Australia helped offset weakness in France, which was rocked by protests that began in September.
Revenue rose 1 percent to $7.16 billion for the quarter, short of Wall Street expectations of $7.28 billion.
Net income rose 9 percent to $2.49 billion. Adjusted for one-time items, the company earned $3.57 per share. That beat analysts' forecast for a $3.38 per-share profit.
Shares rose more than 5 v in morning trading Wednesday.
