A “Barron’s Roundtable” panel discusses how the fast-food chain will handle consumers’ wallet pinching.
McDonald’s is testing new value menu offerings with a view to launching a new national value menu program in early 2027.
The fast food giant sought to counter slowing U.S. traffic as its quarterly results release on Wednesday revealed its U.S. comparable sales fell 0.2% in the third quarter.
McDonald’s CEO Chris Kempczinski said during the company’s latest earnings conference call that during the last week of October, McDonald’s began an eight-week test of two new builds of affordable, all-day daily menus at about 1,900 restaurants in a handful of regions.
The test involves mix-and-match bundles to provide customers with greater choice similar to previous buy-one-add-on offers, as well as fixed bundles with a set mix.
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The McDonald’s CEO added that a group of franchisees representing about 4,000 restaurants were moving forward with similar entry-level packages ahead of official test results. Kempczinski said the two groups “together represent more than 40% of the U.S. system, reflecting strong alignment around this opportunity.”
McDonald’s plans to roll out a new value menu early next year after evaluating the results of testing that concludes this year. (Spencer Platt/Getty Images)
“We use the results of this test to determine which structure resonates most with customers, works best operationally and generates sustainable additional traffic and sales for franchisees,” Kempczinski said. “Our goal is to launch a new program nationally in early 2027.
“Our goal is simple. Customers should see a clear and compelling value proposition every time they consider McDonald’s, whether they are looking for an affordable individual item, a complete meal or a digital offer in the mobile app.”
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McDonald’s CEO Chris Kempczinski said the company wants to provide a clear value proposition to customers considering the fast food giant. (McDonald’s Company)
The budget-friendly menu plans come after McDonald’s announced a multi-year plan called “NEXT” in September that will focus on restaurant modernization and staff training, as well as technology deployment.
The company will spend $8.5 billion under the NEXT strategy through 2036, including approximately $5 billion through 2030. The NEXT partnership’s support for franchisees will include a combination of capital support and rental relief.
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| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| MCD | MCDONALD’S CORP. | 275.60 | -4.74 | -1.69% |
McDonald’s global chief financial officer Ian Borden said during the earnings conference call that the fast-food chain is already implementing elements of the NEXT strategy, including rolling out a new beverage platform, launching the “Make It Golden” training initiative and implementing operational pilots for hand-breaded chicken.
Borden added that the company is starting to open renovated NEXT restaurants around the world, including the first international restaurant in Poland.
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The company will begin renovating hundreds of U.S. restaurants in 2027 to overhaul kitchen layouts and equipment to support future menu changes. McDonald’s aims to achieve a global operating rate of more than 5,000 restaurants per year in 2028.
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