McDonald's is facing slowing sales. Its under $3 value menu shows why
McDonald's CEO Chris Kempczinski attributes slowing US sales to the company's recent 'under $3' value menu and a cluttered promotional schedule. The chain is struggling to balance value-focused offerings with franchisee profitability and consumer demand.
Why it matters
This reflects broader economic challenges in the fast-food industry as inflation impacts consumer spending and corporate pricing strategies.
McDonald's rolled out a menu of items under $3 in April and faced challenges almost immediately, CEO Chris Kempczinski said. Bloomberg/Getty Images McDonald's US sales slowed down in the second quarter, the fast food chain said on Tuesday. Its latest value menu is one of the big reasons why, CEO Chris Kempczinski said. McDonald's rolled out its Under $3 menu while cutting back on digital offers, he said. McDonald's tried a new value menu . Customers aren't loving it. The fast-food giant's comparable US sales growth slowed to 0.8% during its second quarter, a slower clip than the 2.5% it reported for the year-ago quarter. The chain also changed leadership of its US business, naming Skye Anderson as president, taking over for Joe Erlinger effective Tuesday. McDonald's has spent the last couple of years experimenting with its value offerings, including a $5 meal deal .
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