McDonald's $5 meal deal hasn't seen a surge in customers , according to fast food gurus. BTIG analyst Peter Saleh, who keeps tabs on footfall at fast-food joints, reckons the golden arches might need to rethink their game plan and prolong the promo.
He reckons the bargain is all about shifting Americans' view that McDonald's is pricey and to reel in more punters. He's betting on the special, which kicked off on 25 June, to get an extension till September, reports Seeking Alpha.
"It is too early to tell whether this $5 Meal offer will drive more profitable traffic," Saleh penned. "This will give us more time to get the message across and we can better estimate the effect on the number of customers ."
McDonald's is reportedly mulling over stretching the deal . Even if it's not a nationwide move, local franchise owners are getting a nudge to keep it going.
Franchise holders in spots like Denver, Dallas, Phoenix, and Las Vegas have already decided to stick with it, according to one source. Saleh also fancies other McDonald's deals like free fries on Fridays to stick around during the summer as rivals such as Burger King and Wendy's dish out more bargains.
McDonald's $5 steal, which included a McChicken or McDouble, a quartet of chicken nuggets , fries, and a drink was launched to offer customers "meaningful value". When the news of the meal deal first emerged in May, it was speculated that not all outlets would participate due to higher labour costs and rent.
However, McDonald's has found a workaround by allowing managers in pricier states - Alaska, California , Guam, Hawaii, Nevada, Manhattan in New York and Washington - to charge $6 for the deal.
The promotion is expected to run for about a month. Last year, McDonald's raked in an impressive profit of $14.5 billion. Despite this, fast-food chains are grappling with dwindling customer numbers as Americans grow weary of two years of price hikes and are staying away, prompting these chains to devise new offers.
Burger King's $5 Your Meal which bears a striking resemblance to McDonald's offer was the first to hit restaurants in June. Customers can select from one of three sandwiches a Whopper Jr, a Bacon Cheeseburger or a Chicken Jr along with four chicken nuggets, fries and a soft drink.
Wendy's is offering a breakfast deal for $3 and also a four-course meal for $5. Starbucks has also unexpectedly entered the value-for-money arena with a coffee and breakfast combo starting at $5.
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