McDonald’s is supersizing its value menu to win back average Americans — could it be a sign of trouble ahead?

Core Insights - McDonald's has reintroduced Extra Value Meals, offering a 15% discount across eight new meal options to attract low-income customers who have reduced their spending [1][2] - The average U.S. household's spending on dining out in 2023 is $3,933, meaning a 15% discount could result in approximately $600 in annual savings, significantly benefiting lower-income families [2] - The company's value menu is a strategic response to a "two-tier economy," where upper-income households are spending freely while lower- and middle-income consumers are tightening their budgets [3] Economic Context - Consumer prices have increased by 25.2% since 2020, contributing to the financial strain on lower- and middle-income families [3] - The wealthiest 10% of Americans are projected to account for half of all consumer spending by early 2025, indicating a significant disparity in spending power [4] - Lower- and middle-income families are actively seeking to cut back on expenses, as evidenced by Chipotle's reduction in annual sales targets due to rising menu prices [5] Wealth Distribution - The Federal Reserve reports that the wealthiest 10% of Americans hold about two-thirds of the nation's wealth, including 87% of equities and mutual funds, while the bottom 50% own only 2% [6]