McDonald's' Response to Inflation? A $5 Meal Deal — Here's Everything to Know About It.

McDonald's announced the launch of its $5 Meal Deal starting this week, which includes a McDouble or McChicken, small fries, four-piece Chicken McNuggets and a small drink. McDonald's is also offering a free medium french fries with any $1 purchase via the mobile app every Friday through 2024. And on July 13 — National French Fry Day — customers can get free fries of any size.

"We heard our fans loud and clear — they're looking for even more great value from us, and this summer that's exactly what they'll get," Joe Erlinger, President of McDonald's USA, said in a statement . "Value has always been part of our DNA."

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The announcement comes as stubborn inflation squeezes lower-income consumers, who have demanded the fast food giant offer more value. McDonald's saw flat to declining Q1 industry traffic in the U.S., CEO Chris Kempczinski hinted at a national value platform during the Q1 earnings call , emphasizing the need for a centralized, national offer instead of localized deals.

"McDonald's has a long history of being the go-to destination for value and it's imperative that we continue to keep affordability at the forefront for our customers," Kempczinski said during the call. "We literally wrote the playbook on value, and we are committed to upholding our leadership within the industry."

The $5 Meal Deal follows a May 29 open letter from Erlinger addressing rumors and misconceptions about McDonald's menu price increases. Meanwhile, competitors like Burger King and Wendy's are also introducing value offers to attract budget-conscious consumers.

Read More: Yahoo! Finance