McDonald's said last month that it would concentrate on affordability in response to several concerns about increasing costs. One way the fast-food giant plans to do this is by emphasizing its value packages.
During the UBS Global Consumer and Retail Conference on March 13, McDonald's CFO Ian Borden mentioned the "challenging consumer environment," citing the effect of inflation on consumer spending.
Borden said that as part of the chain's emphasis on cheaper choices, the fast-food behemoth would heavily push its meal packages beginning in 2024. He added that 90% of McDonald's outlets in the United States provide breakfast or lunch packages for less than $4.
"We want to make sure the consumer knows what's available and obviously is thinking of us when they're making their choices," said Borden.
He also mentioned the McSmart's 2023 release date, which is now accessible in Germany. Borden describes this product as a "entry meal affordable option," which contains two burgers, medium fries, and a soft drink for around 5.99 euros (or $6.53 in US dollars). "It did incredibly well," Borden remarked.
Furthermore, the CFO said that lower-income clients are preferring to eat at home more often, which was also addressed at the chain's most recent earnings conference in February.
During the call, CEO Chris Kempczinski said that the business "actually saw that cohort decrease in the most recent quarter," referring to clients earning $45,000 or less.
McDonald's also intends to attract customers by being "a lot more active" in bringing its digital channels to life and ensuring that its offerings are appealing to consumers. The fast-food company now has 34 million active loyalty members.
In addition to promoting bargain products, McDonald's intends to produce larger burgers. Borden said that the fast-food giant is currently testing a few bigger burgers in certain locations. If the menu items are successful, McDonald's intends to launch them internationally.