McDonald's Hopes To Win Back Customers With Meal Bundles

Last month, McDonald's shared that it plans to focus on affordability amid numerous complaints surrounding its rising prices. One way the fast-food chain intends to do this is by highlighting its value bundles.

During the UBS Global Consumer and Retail Conference on March 13, McDonald's CFO Ian Borden pointed out the "challenging consumer environment," noting inflation's impact on consumer spending. Borden said lower-income consumers are "expecting greater value for money than they have been previously," according to a transcript of his remarks.

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As part of the chain's focus on affordable options, Borden said the fast-food giant will actively promote its meal bundles in 2024. He said 90% of McDonald's U.S. restaurants offer bundles at breakfast or during the day at around less than $4.

"We want to make sure the consumer knows what's available and obviously is thinking of us when they're making their choices," Borden said.

He also noted the 2023 rollout of the McSmart, which is available in Germany. Described by Borden as an "entry meal affordable option," this offering includes two burgers, medium fries, and a soft drink for about 5.99 euros (or about $6.53 in U.S. dollars). "It did incredibly well," Borden said.

Additionally, the CFO noted that lower-income consumers are choosing to eat at home more often, which was also discussed during the chain's most recent earnings call in February. On that call, CEO Chris Kempczinski said the company "actually saw that cohort decrease in the most recent quarter," referring to consumers with an income of $45,000 or less.

In 2023, McDonald's prices went up by about 10%. Borden said the company expects price increases to come down as inflation slows.

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Another way McDonald's hopes to attract its customers is by being "a lot more active" in bringing its digital channels to life and ensuring its offers are compelling to consumers. The fast-food chain currently has 34 million active loyalty members.

In addition to emphasizing value offerings, McDonald's has plans to launch bigger burgers. Borden said the fast-food chain is in the process of testing a couple of larger burgers in a few markets. If the menu items are successful, McDonald's plans to launch the items globally.