McDonald’s is developing a $5 value meal | Wilnesh News

McDonald’s The company is working to roll out value meals in U.S. stores to help address growing challenges faced by consumers, two people familiar with the matter told CNBC.

People say a $5 meal might include four things: a McChicken or McDonald’s Double, four chicken nuggets, fries and a drink.A great value meal is Bloomberg News first reported.

The potential new product launches come as lower-income consumers are beginning to cut back on spending, particularly on fast-food brands. References to low-income consumers in corporate earnings calls are at their highest level in nearly two years, according to Bank of America data.From McDonald’s to Wendy’s arrive Dave and Buster’s All are mindful of spending constraints.

McDonald’s recently reported mixed first-quarter results, with U.S. same-store sales slightly below expectations. Rising prices have helped boost average checks, but some consumers have been put off by rising costs.

Chris Kempczinski, the company’s chief executive, said: “As prices for everyday expenses rise, consumers are becoming more picky about every dollar they spend, which is putting pressure on the (quick-service restaurant) industry.

He added that McDonald’s must have a “strong focus” on affordability to attract diners.

Kempczynski said on the call that the company was working on a national value deal in the U.S., and Chief Financial Officer Ian Boden said the U.S. leadership team was working closely with owner-operators in this environment. McDonald’s Corp. and franchisees operate 95 percent of McDonald’s stores and have influence over such products, but they often squabble over promotions that can eat into owners’ profits.

McDonald’s initial proposal for a $5 value meal didn’t clear the necessary hurdles and more details are being discussed, according to a person familiar with the matter.The second person said Coca Cola Increase marketing funds to make deals more attractive.

McDonald’s declined to comment to CNBC. Coca-Cola did not immediately respond to a request for comment.

—CNBC’s Amelia Lucas contributed to this article.