McDonald’s is bringing the value back to value meals — but Wall Street is watching
The Big Mac maker is leaning back into value deals as traffic cools and Goldman bets on a rebound.
McDonald’s is dialing down its combo prices in a bid to win back budget-conscious diners. Starting today, the chain will roll out eight Extra Value Meals, from the Big Mac to the Sausage McMuffin with Egg, priced about 15% below what you’d pay buying each item separately. Specials will also include an $8 Big Mac meal and a $5 breakfast combo, with breakfast offerings for popular items like the McGriddle.
Earlier this month, McDonald’s shares jumped after the burger giant posted a sales rebound in Q2 after a rough start to the year. Still, recent price hikes and online backlash over menu costs have been eating into its bottom line, with same-store traffic slipping, especially among customers earning under $45,000 a year. McDonald’s follows rivals like Yum! Brands’ Taco Bell and Dunkin’ rolling out more value meals to lure folks back into the drive-thru.
The chain hasn’t just brought back combos; last month, McDonald’s brought back its long-lost Snack Wrap after “countless posts” and online petitions asking for its return to menus nine years after it was removed.
Goldman Sachs also gave McDonald’s a fresh boost Tuesday, adding the stock to its high-profile Conviction List and setting a 12-month price target for $355 — or about 12% above its current trading levels. Analysts cited Mickey D’s global scale, digital ordering push, and brand loyalty as giving it staying power even as rivals turn up the heat with cheaper menu deals.
McDonald’s shares rose about 1% following the release, and are up roughly 7% year to date.
