McDonald’s Extra Value Meals are back, saving consumers 15% across eight new offerings that each feature an entrée, fries and drink — with more deals to follow later this year [1]. The move by McDonald’s is an attempt to win back low-income customers who’ve pulled back their spending [2]. Must Read But how much will that discount really matter to most Americans? Well, if the average U.S. household spent $3,933 eating away from home in 2023, a 15% discount on every one of those meals would add up to $60 ...

Core Insights - McDonald's CEO Chris Kempczinski highlighted the emergence of a "two-tier economy," indicating that while upper-income consumers are thriving, middle- and lower-income consumers are facing significant financial pressure [1][2][3] Group 1: Economic Conditions - The economic landscape is divided, with upper-income individuals (earning over $100,000) experiencing confidence due to high stock market performance and international travel [3] - In contrast, middle- and lower-income consumers are struggling, with traffic for lower-income consumers down by double digits, leading to meal skipping or dining at home [6] Group 2: Strategic Response - McDonald's has reintroduced Extra Value Meals to attract budget-conscious customers, offering meal bundles at 15% less than purchasing items separately [1][4] - The new meal options include a $5 Sausage McMuffin with Egg meal and an $8 Big Mac meal, with additional offers planned for November [9] - The company is implementing a "value ladder" strategy to cater to consumers with varying spending capabilities, providing both low-cost and premium options [10]

Part of what we also saw was that particularly with middle and lower income consumers, they're feeling under a lot of pressure right now. I think there's a lot of, you know, commentary about what's the state of the economy, how's it doing, and and what we see is it's really kind of a two-tier economy. If you're upper income, earning over $100,000, things are good.Stock markets are near all-time highs. You're feeling uh, you know, quite confident about things. you're seeing international travel, all those ba ...